African Leaders Urge Stronger Global Financial Reforms Amid Mounting Challenges

Mr. Gatete recognized and appreciated the IMF’s ongoing reforms that stem from the recommendations of the Africa High-level Working Group on the Global Financial Architecture.

During a high-level African Consultative Group meeting with IMF Managing Director Kristalina Georgieva, held on the sidelines of the IMF-World Bank Spring Meetings, Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA), delivered a compelling address on the urgent and growing economic, social, and geopolitical challenges facing the African continent.

A Landscape of Persistent Uncertainty

Mr. Gatete opened his remarks by acknowledging the critical juncture at which African nations find themselves. "We are meeting at a critical time of profound uncertainty," he stated, emphasizing how deeply intertwined economic obstacles have become. African economies are currently grappling with persistent funding shortages, trade disruptions, and escalating debt vulnerabilities that threaten to reverse recent development gains.

He noted that while African nations have demonstrated resilience in the face of external shocks—including the COVID-19 pandemic, global inflation, and regional conflicts—the cumulative effect of these crises has severely constrained fiscal space and slowed progress toward sustainable development goals (SDGs).

Progress on IMF Reforms Acknowledged

Mr. Gatete recognized and appreciated the IMF’s ongoing reforms that stem from the recommendations of the Africa High-level Working Group on the Global Financial Architecture. Specifically, he praised:

• Reforms to the Resilience and Sustainability Trust (RST): Highlighting its expanded catalytic role in mobilizing additional finance, broadening its scope to include pandemic preparedness, and fostering greater collaboration with Multilateral Development Banks (MDBs).

• Higher Access Limits to the General Resources Account (GRA): Commending the IMF’s decision to maintain enhanced access to emergency financing tools, helping countries better manage liquidity crises.

• Advancements in IMF Arrears Policies: Applauding strides made in reforming policies related to debt restructuring, particularly for heavily indebted countries.

However, he was clear that while these reforms mark meaningful progress, further transformative actions are urgently needed to effectively address Africa’s persistent challenges.

Priorities for Africa’s Economic Transformation

Drawing from key outcomes of the recent ECA Conference of Ministers of Finance, Economic Development and Planning, Mr. Gatete outlined a strategic vision to steer Africa toward greater resilience, inclusion, and transformation:

1. Fast-Tracking AfCFTA Implementation

The African Continental Free Trade Area (AfCFTA) is seen as a linchpin for boosting intra-African trade, industrialisation, and economic diversification. Mr. Gatete stressed the urgency of:

• Building competitive, climate-smart, and digitally enabled regional value chains.

• Harmonising industrial policies across nations.

• Investing heavily in infrastructure and logistics to enhance connectivity and market integration.

2. Strengthening Domestic Resource Mobilisation

Acknowledging the continent’s dependence on external financing, Mr. Gatete called for bolstering domestic resource mobilisation through:

• Digitalisation of tax systems to improve tax revenue collection.

• Broadening the tax base and enhancing tax administration capacities.

• Combating illicit financial flows and plugging revenue leakages.

• Developing deep and liquid domestic financial markets to reduce reliance on foreign capital.

3. Advocating for Global Financial Architecture Reform

Mr. Gatete underscored Africa’s urgent need for a stronger voice in global financial decision-making platforms. He emphasized:

• The necessity of advancing reforms in the Global Financial Architecture to enhance Africa’s representation and influence.

• Coordinated African positions in forums such as the G20, the upcoming Fourth International Conference on Financing for Development (FfD4), and the UN Tax Convention negotiations.

Commitment to Collaborative Solutions

In closing, Mr. Gatete reiterated the importance of forging robust partnerships with international financial institutions like the IMF and other global stakeholders. He affirmed the Economic Commission for Africa's dedication to facilitating meaningful reforms that are vital for building a more equitable, inclusive, and resilient global economic system.

"ECA remains your committed partner in this journey," Mr. Gatete assured, calling for collective action and solidarity to tackle the formidable challenges ahead.

His remarks served as a powerful reminder that without urgent, coordinated efforts to address Africa's unique vulnerabilities, the continent risks losing hard-won development gains. Yet, with determined leadership, strategic partnerships, and bold reforms, Africa can navigate the present storm toward a future of sustainable growth and prosperity.