AfriCatalyst amplifies its efforts on the reform of the global financial architecture at the IMF- World Bank Annual Meetings

Washington DC- In a week filled with engaging discussions and strategic collaborations  at the World Bank-IMF Annual Meetings in Washington D.C, AfriCatalyst, in partnership with key stakeholders convened a series of high-level events that focused on  Africa’s transformational journey towards sustainable development with discussions on critical areas including innovative and concessional  financing and sovereign credit ratings .

Over three days, African ministers,multilateral financial institution’s heads, global experts,civil society organizations and multilateral financial institutions addressed Africa’s pressing needs, outlined challenges in today’s polycrisis environment, and emphasized solutions to drive growth and resilience across the continent. 

“We must ensure timely access to affordable financing from global capital markets for African countries, alongside efforts to boost domestic resource mobilization and policy enhancement. It is important to grant African nations the opportunity to renegotiate their debts, easing their debt service burdens while addressing key national priorities,” affirmed AfriCatalyst’s CEO Daouda Sembene

Kicking off a busy week, AfriCatalyst in partnership with the Alliance of  African Multilateral Financial Institutions (AAMFI) and the African Union co hosted a high level  which focused on how African Multilateral Financial Institutions (AAMFI) can drive sustainable development across the continent through increased development financing.Participants emphasized the need for unity among African financial institutions to unlock the continent’s potential, focusing on job creation, reducing inequality, and promoting infrastructure investment.

“African Multilateral Financial Institutions must take ownership of our development and fund it ourselves, focusing on catalyzing and deploying institutional savings within Africa. Our biggest challenge is job creation; we need to find quality and sustainable jobs for our young people,” stated Samaila Zubairu, President and CEO of the Africa Finance Corporation and 1st Vice Chairperson of the Alliance of African Multilateral Financial Institutions (AAMFI).

In partnership with the Centre for Global Development , AfriCatalyst hosted an event to assess the International Development Association’s (IDA) performance in supporting Africa amidst the ongoing polycrisis, including the COVID-19 aftermath and global financial pressures. The event highlighted IDA’s instrumental role in securing global public goods and emphasized the need for concessional financing and increased funding volumes. 

“IDA’s significance for developing and least developed countries cannot be overstated. It has played a crucial role in addressing Africa’s priority areas, especially in the social sectors. IDA remains instrumental in securing access to global public goods, which are key to strengthening global peace, stability, and improving livelihoods,” said Dr. Retselisitsoe Matlanyane, Minister of Finance of Lesotho

“Concessionality is crucial, but so is volume. As challenges evolve, IDA must balance both to remain effective. There are three key levers: donor contributions, balance sheet optimization, and financial terms. Each lever plays a part in maximizing impact while managing risks,” Dirk Reinermann Director of IDA Resource Mobilization and IBRD Corporate Finance at the World Bank stressed.

Concluding the week AfriCatalyst continued with efforts to help African countries navigate their credit ratings with an event in collaboration with UNDP Africa, The Brookings Institution, African Center for Economic Transformation , and Glasgow Financial Alliance for Net Zero. The  event aimed to explore how improving sovereign credit ratings can reduce Africa’s borrowing costs, ease debt burdens, and unlock affordable development financing

“There is a lot of subjectivity when it comes to ratings for Africa, especially during times of crisis when rating agencies rush to downgrade countries. Risk  perception affects the level and cost of investment, and we really need to change the narrative. We need to tell a different story about the risk” stated Jean-Claude Tchatchouang, Senior Advisor at AfriCatalyst

Throughout the three days of discussions, the urgent need for innovative financing instruments to mobilize resources for Africa’s growth was reiterated. AfriCatalyst remains dedicated to advancing these efforts to transform Africa  through collaboration with different partners. The dialogues outlined a way forward, highlighting sustainable development financing as crucial for Africa’s path to inclusive growth and development