AU Chair Advocates for Global Financial System Reform at G20-Africa Conference

At a recent conference in Berlin, highlighting the intersection between G20 nations and African economies, African Union (AU) Chair Azali Assoumani has made a critical appeal for the support of Africa's plea to overhaul the international financial architecture. The aim is to enhance capital mobilization for the continent’s burgeoning economies and address the profound deficiencies that currently exist within the financial system.

Addressing delegates, Assoumani emphasized the importance of creating a fairer and more inclusive system for global economic governance. He stressed the need for a robust partnership between G20 nations and African countries, one that transcends the existing Compact with Africa initiative which has been limited to a subset of the continent’s countries.

The Compact with Africa initiative, which is currently hosted by Germany, welcomes leaders from various African nations to collaborate on economic development. With participation limited to thirteen countries - namely Morocco, Tunisia, Egypt, Senegal, Guinea, Ivory Coast, Ghana, Togo, Benin, Burkina Faso, Rwanda, Democratic Republic of Congo, and Ethiopia - Assoumani highlighted the undisputed potential of the initiative when fully realized and widened to embrace the continent as a whole.

Assoumani's remarks pinpoint the necessity for a revised and more integrated approach to investment in Africa. Despite investments from G20 countries to adhering African countries surpassing pre-pandemic levels reminiscent of 2019, they still do not match the peak of nearly $53 billion obtained in the fiscal year 2017/2018. Given that the investment needs within these countries are tremendous, the AU Chair’s call to action stresses the urgency for a transformative change.

The current financial climate, coupled with the initiative's limited reach, has underscored the critical need to extend the Compact with Africa to all African nations. The expansion would result in a strengthened, globally aligned partnership, not only beneficial to Africa but also fostering a symbiotic relationship with Europe and other continents.

The Berlin conference positions itself as a pivotal meeting point for G20 and African leaders, setting the stage for discussions that could significantly impact Africa’s economic landscape. The AU Chair's impassioned plea serves as a galvanizing force for change, urging international counterparts to commit to meaningful financial reforms that would propel African economies and the global community forward.