{"id":10290,"date":"2024-02-18T05:43:43","date_gmt":"2024-02-18T05:43:43","guid":{"rendered":"https:\/\/gbc1.net\/?p=10290"},"modified":"2025-03-14T16:13:02","modified_gmt":"2025-03-14T12:13:02","slug":"37th-au-summit-pushes-for-overhaul-of-global-financial-architecture","status":"publish","type":"post","link":"https:\/\/gbc1.net\/index.php\/2024\/02\/18\/37th-au-summit-pushes-for-overhaul-of-global-financial-architecture\/","title":{"rendered":"37th AU Summit Pushes for Overhaul of Global Financial Architecture"},"content":{"rendered":"\n

On Saturday 17 February 2024, during the 37th AU Summit (#AUS2024<\/a>), a Presidential Dialogue was held to discuss the way forward to push for ‘much needed reforms’ of the Global Financial Architecture. In addition to African heads of state and government, the Dialogue was attended by #DFI<\/a> and #MDB<\/a> working on Africa such as African Export-Import Bank, Trade and Development Bank, Africa Finance Corporation, African Reinsurance Corporation and African Trade and Investment Development Insurance.<\/p>\n\n\n\n

The dialogue was initiated by Ghana President Nana Akufo-Addo who is also the Champion for the creation of strong African Union Financial Institutions. The African leaders generally believe that the International Financial Architecture which emerged after the 2nd World War following the Bretton Woods agreement is no longer fit for purpose. <\/p>\n\n\n\n

In particular, the Global Financial System, which is primarily controlled by the World Bank (WB) and International Monetary Fund (IMF), appears to be disconnected with the reality on the ground in Africa and thus have an incomplete perspective on sovereign risk profile.<\/p>\n\n\n

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Presidential Dialogue on Reform of Global Financial Architecture at AUS2024<\/figcaption><\/figure><\/div>\n\n\n
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“We are all in agreement that the way the Global Financial Architecture works at the moment does not work in our favor. There is a need to make some fundamental systemic reforms.”<\/p>\nGhana President Nana Akufo-Addo<\/cite><\/blockquote>\n\n\n\n

The Global Financial System has found it a challenge to deal with the multiple crises currently riddling the world. Were it not for African financial institutions, many African countries would not have been able to access financing in order to procure urgently needed life-saving vaccines and medical materials during the #COVID<\/a> pandemic.<\/p>\n\n\n\n

Many African countries have valuable assets which are not taken into account on the balance sheets, thus lowering their credit score and in turn limits options in term of financing. From an African perspective, the financial institutions have been unable to mobilize the long-term resources needed to support the development agenda of the emerging continent, forcing countries to turn to private capital markets with unfair interest rates and unfavorable conditions. <\/p>\n\n\n\n

The African leaders have outlined an action plan as follows:<\/p>\n\n\n\n