Business
WITH the successful implementation of the United Nations’ Agenda 2030 for Sustainable Development and the African Union’s Agenda 2063 depending on Africa’s ability to mobilize adequate and timely financial resources, scaling up efforts in resource mobilization for development and incorporating innovative financing tools is urgent and crucial.
This urgency was the focus of a high-level side event organized by the Alliance of African Multilateral Financial Institutions, AAMFI, in partnership with the African Union and AfriCatalyst, on the sidelines of the just-ended 2024 Annual Meetings of the International Monetary Fund and the World Bank Group.
Key stakeholders emphasized the need for collective efforts from African Multilateral Financial Institutions and Governments to leverage Africa’s vast resources for sustainable economic development.
“We as Africans in our different capacities need to strengthen African multilateral institutions to not only meet the urgent demands of today but to build a future where African’s can thrive,” said H.E. Hilda Suka-Mafudze, African Union Ambassador to the United States of America, host of the event.
Bringing together African finance ministers, heads of African Multilateral Financial Institutions and other key stakeholders, the event convened to discuss strategies, challenges, and opportunities for accessing global capital to finance viable public and private sector projects highlighted the importance of mobilizing institutional savings from the various African Multilateral Finance Institutions to drive sustainable development efforts across the continent
Albert M. Muchanga, African Union Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, implored the institutions to work with the African Stock Exchange Association to create a Pan-African Capital Market, saying
“There is a need to work with the African stock exchanges association so that those countries which do not have stock exchanges, the Alliance can assist in establishing those stock exchanges.
In his opening remarks Samaila Zubairu, President and CEO of the Africa Finance Corporation and 1st Vice Chairperson of AAMFI emphasized the need to reduce income inequality through sustainable development to unlock Africa’s financial potential and drive long-term growth and stability. “Our biggest challenge is job creation—we need quality, sustainable jobs for young people to reduce poverty and inequality,” he stressed
He further called for greater ownership of Africa’s development by mobilizing institutional savings and creating a framework for African governments and institutions to capitalize banks and development finance institutions.
“African governments have made notable efforts to raise capital, even during challenging times. However, we must continue ensuring that African resources benefit Africa”, noted Denys Denya, Senior Executive Vice President, Finance, Administration, and Banking Services at Afreximbank
Panelists also presented their countries’ strategic efforts to enhance economic resilience, with H.E. Fatima Haram Acyl, Minister for Economy and Planning of Chad, highlighting Chad’s initiatives aimed at boosting non-oil revenues through innovative measures such as digital tax implementation and land management systems, “We have seen a positive trend in non-oil revenue growth, indicating a growing tax culture and fiscal citizenship,” she noted.
Ismael Nabe, Minister of Planning and International Cooperation of Guinea, stated: “The government is prioritizing the fight against corruption and collaborating with organizations like the African Development Bank and Afreximbank to strengthen the economy.”
De-risking also emerged as a key topic during the discussions, with Jean-Paul Adam, Director of Policy, Monitoring, and Advocacy at the United Nations (UN) Office of the Special Advisor on Africa, underscoring the need for large-scale de-risking programs to facilitate investment in critical sectors such as energy and infrastructure.
Hope Murera, Managing Director and CEO at Zep-Re, PTA Reinsurance Corporation, further emphasized the importance of regional integration for the insurance and reinsurance sectors, stating, “The amount of global capital we attract depends on how effectively we can demonstrate value at scale. A regional perspective is always important in this regard”
The urgent need to use innovative instruments to mobilize resources for Africa’s growth and development was highlighted, with Manuel Moses – CEO African Trade & Investment Development Insurance (ATIDI) “If we add all our balance sheets compared to the needs, we are still lagging behind- to bridge this gap we need to use insurance and guarantees.”
Thierno-Habib Hann, CEO and Managing Director of Shelter Afrique Development Bank, ShafDB, added, “We have substantial liquidity within local pension funds that can be utilized to finance our economies and industries in local currency. Relying on foreign investment and currency is simply not sustainable.”
Abdourahmane Diallo, Managing Director of the African Solidarity Fund, reiterated the need for tailored financing solutions saying “Governments often attempt to raise funds domestically, but it is insufficient. They then turn to international markets, facing high interest rates due to high-risk perceptions. We need mechanisms to mitigate this risk,”
The event concluded with renewed commitment from participants to continue advocating for policies that leverage Africa’s resources for sustainable development, ensuring that these efforts translate into tangible benefits for the continent’s people and economies.
Distributed by APO Group on behalf of Alliance of African Multilateral Financial Institutions, AAMFI.
A.I
Nov. 2, 2024
Tags: Alliance for African Multilateral Financial Institutions H.E. Fatima Haram Acyl
