African Central Bank Governors on Thursday met in Abuja in effort to push for deeper intra-African trade. They are also advocating for reforms to the global financial system. This, it believes is skewed against the continent.
This was contained in a statement by the leaders at the meeting, being hosted by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The meeting is part of the African Caucus that prepares input for the International Monetary Fund (IMF) and World Bank’s annual meetings.
According to the statement, the central aim of the meeting, taking place from at the Transcorp Hilton Hotel, is to address the imbalance within the global financial architecture.
This structure, it said, favours developed economies at the expense of developing nations. Many of which are grappling with significant debt challenges.
It said, “The primary goal of the meeting is to address intra-African trade as a crucial catalyst for sustainable economic growth. And to prepare input for the IMF and World Bank’s annual meetings.”
Keynote speakers include Governor of the Bank of South Sudan, James Garang, who has led reforms to integrate South Sudan’s financial system with the global order.
“Several issues top our regional and global agenda today, including the realization that our planet faces unprecedented existential threats; poverty is on the rise; and geoeconomic fragmentation is increasing.
“The effects of climate change—floods and droughts—and geopolitical conflicts pose significant risks and challenges for monetary policy globally,” Garang was quoted as saying.
Recall that African leaders such as President William Ruto of Kenya, African Development Bank, AfDB, President Akinwumi Adesina, and Africa Export-Import Bank, Afreximbank, President Benedict Oramah, have been vocal advocating for financial reforms.
The leaders argued that the current international financial system unjustly labels Africa as a risky borrower despite its vast potential.
They said, “We need to transform this architecture to give Africa a fair chance to turn its immense potential into opportunity.”
According to the statement, Garang had in November 2023, spearheaded a modernization effort at the Bank of South Sudan.
It stated that the bank has undergone a restructuring to improve its ability to fulfil its mandate. And to strengthen its oversight of the financial sector.
Recall that global public debt reached $313 trillion in 2023, with developing economies bearing a significant burden.
According to United Nations figures, over a fifth of tax revenue in 25 developing countries went towards servicing external debt. This is leaving approximately 3.3 billion people—around 40 per cent of the global population—spending more on interest payments than on health or education.
According to AfDB President, Adesina highlighted the need for financial reforms. He stated that, “Africa needs $1.3 trillion annually to meet its sustainable development goals by 2030.
He, however, said this cannot happen without a more responsive, inclusive, and accountable international financial system.
The African Caucus, established in 1963, aims to strengthen the voice of African Central Bank Governors in the Bretton Woods Institutions on development issues pertinent to Africa.
Representatives of all 54 African countries, through the Caucus meets twice yearly. This money is to consolidate views and convey them to the heads of the IMF and World Bank through a Memorandum.
source: Premium Times
Follow us for more news on our WhatsApp News Channels @
https://whatsapp.com/channel/0029VaC505jB4hdZ5Yx9g82U
