IMF, World Bank were not originally set up to support Africa, says former Finance Minister Seth Tekper

A former Finance Minister of Ghana, Seth Terkper, has stated that the International Monetary Fund (IMF) and the World Bank were not originally established to support African nations.

Mr. Terkper made the remarks amid ongoing global discussions regarding the role of multilateral financial institutions in supporting developing economies, particularly during periods of economic turbulence.

Speaking in an interview with Joy News, the former minister provided a historical context for the institutions, tracing their origins to the Bretton Woods Conference. He explained that their primary mandate at the time of inception was the post-World War II reconstruction of devastated European economies.

According to Mr. Terkper, the initial financial flows from these institutions were largely directed toward war-torn European countries, rather than African economies, which were still under colonial rule at the time.

“Let’s put it this way, the institutions that we mentioned, the World Bank and IMF, that helped during the crisis, you talk about it, that’s why I’m using them as examples. They were not set up to help Africa,” he stated.

He elaborated on the historical context, saying, “I am saying that at the time they were set up, the Bretton Woods, a substantive flow went to the countries that were engaged in a war, Germany and the rest, which were devastated.

“Those are the first financing, but today they don’t go to those institutions to stabilise,” Mr. Terkper explained.

His comments have added to the ongoing discourse on the suitability of the Bretton Woods institutions’ frameworks for addressing the unique challenges facing African economies today.