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Mangudya calls for equitable IMF fund disbursements
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Former Reserve Bank of Zimbabwe (RBZ) governor and current CEO of Mutapa Investment Fund, John Mangudya, has urged the International Monetary Fund (IMF) to ensure equitable disbursements of funds to Africa to enable the continent to realize meaningful developmental impacts.
Mangudya made the remarks during a panel discussion at the Afreximbank 2025 Annual Meetings held in Abuja, Nigeria, from June 25 to June 27.
Addressing delegates, Mangudya emphasized the need for regional financial institutions and African blocs to build a resilient financial architecture through fair resource allocation.
"These institutions should be catalysts of development by deploying resources equitably. I did not say fairly, I said equitably because the International Monetary Fund (IMF) tells us that in 2021 they distributed their funds fairly, wherein Africa received US$33.3 billion against a pocket size of US$650 billion," he said.
Mangudya highlighted that the $33.3 billion allocated to Africa represented only about 5% of the IMF's Special Drawing Rights (SDRs), a figure he described as disproportionately low given Africa's pressing financial needs compared to Western high-income countries.
"As a result of that inequitable distribution, those countries cannot use those funds and, therefore, they are now talking about the reallocation of the SDRs. It means that in the first place those funds were not equitably disbursed so that's why there is need for our institutions to ensure equitable distribution of funds," he said.
The seasoned banker further called on African financial institutions to collaborate and align their efforts around a common agenda supported by a relevant ecosystem to strengthen the continent's financial resilience.
Mangudya also urged shareholders and fund users to prioritize Africa's growth by investing in value addition and reducing the export of raw materials.
"Africa's institutions must provide de-risking instruments such as guarantees, political risk insurance, credit enhancement, and concessional funding," he added.
His insights come amid ongoing discussions about how Africa can overcome financial challenges and accelerate sustainable development through improved regional cooperation and better access to financial resources.
Mangudya made the remarks during a panel discussion at the Afreximbank 2025 Annual Meetings held in Abuja, Nigeria, from June 25 to June 27.
Addressing delegates, Mangudya emphasized the need for regional financial institutions and African blocs to build a resilient financial architecture through fair resource allocation.
"These institutions should be catalysts of development by deploying resources equitably. I did not say fairly, I said equitably because the International Monetary Fund (IMF) tells us that in 2021 they distributed their funds fairly, wherein Africa received US$33.3 billion against a pocket size of US$650 billion," he said.
Mangudya highlighted that the $33.3 billion allocated to Africa represented only about 5% of the IMF's Special Drawing Rights (SDRs), a figure he described as disproportionately low given Africa's pressing financial needs compared to Western high-income countries.
The seasoned banker further called on African financial institutions to collaborate and align their efforts around a common agenda supported by a relevant ecosystem to strengthen the continent's financial resilience.
Mangudya also urged shareholders and fund users to prioritize Africa's growth by investing in value addition and reducing the export of raw materials.
"Africa's institutions must provide de-risking instruments such as guarantees, political risk insurance, credit enhancement, and concessional funding," he added.
His insights come amid ongoing discussions about how Africa can overcome financial challenges and accelerate sustainable development through improved regional cooperation and better access to financial resources.
Source - NewZimbabwe
