MEFMI Holds a Successful Inaugural Research and Policy Seminar

As part of its endeavours to break new ground in capacity building and policy advisory work for its member countries MEFMI held a very successful inaugural Annual Research and Policy Seminar on 10th December 2015 at Rainbow Towers Hotel, Harare, Zimbabwe. The Seminar was necessitated by the need to strengthen MEFMI’s research function to complement the Institute’s advisory services by providing evidence based policy and technical advice to member states.

The challenges that the member countries are currently facing require deep understanding of macroeconomic as well as the various socio-political dynamics that confront them. This makes research an integral part of instruments for supporting economic development as it facilitates deeper understanding of the interplay and impact of different factors on policy outcomes.

The seminar, whose main theme was “Improving the Prospects for High and Inclusive Growth”, was officially opened by Dr. Kupukile Mlambo, Deputy Governor of the Reserve Bank of Zimbabwe. In his opening remarks, Dr. Mlambo commended MEFMI for recognizing the important role that research plays in informing the policy-making process, by creating a platform where policy-relevant knowledge is generated, deliberated, and made available in an accessible and meaningful form to key decision makers. Although the Deputy Governor felt such an event was long overdue in the MEFMI calendar of events, he noted that the 2015 seminar came during very interesting times for Africa, as a new story of hope is emerging out of the continent.

The continent has enjoyed impressive real GDP growth rates over the last decade and half, both relative to its own historical performance as well as in terms of the average growth rates for the global economy. According to some scholars, Africa represents the next global economic growth frontier. The IMF’s April 2015 Regional Economic Outlook also showed that the region was set to register another year of solid economic performance, projected at 4.5% in 2015, placing it among the world’s fastest-growing continents. Despite rapid the economic growth, the pace of poverty reduction in Africa has been painfully slow while inequalities between the rich and the poor people remain high and widespread. The United Nations Development Programme (UNDP) Human Development Report of 2015 indicates that there has been only a marginal reduction in poverty levels for most countries in Africa in recent years.

In addition, most African countries are still vulnerable to shocks as characterised by the global financial and economic crisis of 2008 and 2009. The global financial crisis was a firm reminder that the modest socio-economic gains that the continent has made in recent years can easily be wiped off by external shocks. Hence, there is need for proper safeguards to preserve and improve prospects for sustaining high and inclusive growth in the face of global economic uncertainty. The Deputy Governor commended the MEFMI Secretariat for responding effectively to the region’s needs by organising the Research and Policy Seminar to foster dialogue and exchange of knowledge in order to contribute to the search for solutions to challenges confronting the region, with a view to preserving and improving the prospects for sustaining high and inclusive growth. He noted that timely dissemination of policy-relevant research would enable policymakers to make more constructive use of the results to inform policy. Evidence-based policy advice is critical for improving the effectiveness and relevance of the policies in member countries.  

He urged MEFMI to make the seminar a regular event as it will be very useful in shaping the policies that member countries can adopt.

The seminar was attended by researchers, academics and policy makers from the MEFMI region, as well as representatives of development organizations based in Harare. Among the institutions represented were MEFMI Secretariat, Bank of Uganda, Central Bank of Mozambique, Central Bank of Kenya, Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU), Botswana Institute for Development and Policy Analysis (BIDPA), Reserve Bank of Zimbabwe, The African Capacity Building Foundation (ACBF), IMF Resident Representative’s office, UNDP, the Norwegian Embassy, Crown Agents, Ministry of Finance and Economic Development, Ministry of Macroeconomic Planning and Investment Promotion, Kenyatta University in Kenya, University of Zimbabwe, Midlands State University, the Bankers Association of Zimbabwe and several media houses.

The papers presented focused on the Institute’s key priority areas of Macroeconomic Management, Financial Sector and Sovereign Debt Management and were divided into 4 sub-themes namely, Growth, Poverty and Inequality; Public Debt, Growth and Poverty; Financial Inclusion and Impact on Economic Growth; and Mobilization of Resources to Finance Infrastructure and Pro-Growth.

A total of 16 papers covering diverse subjects within the 4 sub-themes were presented at the one day seminar.

It is expected that once finalized, the papers will be published in a new publication, the MEFMI Research Journal. The papers will also be abridged into policy briefings to make them more relevant to decision makers in MEFMI member countries.