he Alliance of African Multilateral Financial Institutions (AAMFI) convened the third meeting of its Governing Council alongside the African Union Mid-Year Coordination Meeting in Accra, Ghana. During this session, AAMFI welcomed the endorsement by the African Union (AU) Ministers of Finance and Central Bank Governors at their 7th Ordinary Session of the African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning, and Integration, held in Tunis, Tunisia.
The STC Ministerial declaration underscored the critical role of African Multilateral Financial Institutions (AMFIs) in the continent’s financial architecture. AAMFI received robust support and recognition from the Specialized Technical Committee as a key player in fortifying the continental financial framework and advancing the African Union’s Agenda 2063. The Ministers and Central Bank Governors reaffirmed the essential role of AMFIs in continental development and committed to enhancing the capital and credit ratings of these institutions to mobilize crucial funding for Africa’s growth.
The Ministers and Central Bank Governors voiced concerns over recent reports questioning the Preferred Creditor Status (PCS) of AMFIs, stressing its importance in engaging with Credit Rating Agencies and securing development financing. The Ministerial declaration reaffirmed the significance of the rights conferred on AMFIs by African Governments, including PCS, which is vital for reducing borrowing costs and deepening capital markets. They urged AU Member States to uphold their commitments to AMFIs and respect their treaty obligations, further recommending that the AU Assembly mandate the African Union Commission (AUC) to collaborate with AAMFI in engaging key stakeholders, including the G20. The Ministers reaffirmed their commitment to swiftly establish the African Union Financial Institutions, including the African Monetary Institute (AMI) and the African Financial Stability Mechanism (AFSM).
The AAMFI Governing Council emphasized that the Alliance exemplifies Africa’s innovative approach to addressing financing gaps and ensuring sustainable development. Established by African States under treaty, AMFIs have proven to be responsive to Member States in times of crisis, are commercially sustainable, and generate profits and investment returns for shareholders while fulfilling their important development mandates.
The African Union’s rejection of attempts to undermine the preferred creditor status of African-owned and controlled multilateral financial institutions, along with the AU’s commitment to strengthening AMFIs, highlights these institutions’ pivotal role in Africa’s financial architecture. This support ensures that AMFIs can continue aiding African sovereigns in development and driving economic growth.
AAMFI remains dedicated to working closely with AU Member States, the AU, and other stakeholders to implement these critical decisions and advance the objectives of Agenda 2063. AAMFI members will stay engaged and proactive in supporting these decisions, ensuring their collective efforts align with the AU’s vision for a robust and sustainable financial architecture in Africa.
Co-founded by the African Trade and Investment Development Insurance (ATIDI), African Export Import Bank, Shelter Afrique Development Bank (ShafDB), Trade and Development Bank, Africa Finance Corporation, African Reinsurance Corporation, and ZEP-RE PTA Reinsurance Co., AAMFI is envisioned to become a powerful negotiating body that will improve Africa’s position in the global financial system. Its membership is also open to all other institutions established under treaty agreements by African states.
