AU unveils 'Africa Club' to address financial challenges
Membership will be open to all African multilateral financial institutions aligned with the club's objectives, purposes, and criteria.
The African Union (AU) is expected to launch an Alliance of African Multilateral Financial Institutions (AAMFI) dubbed the 'Africa Club.' This initiative aims to strengthen and support Africa's position in an evolving global financial architecture.
The official launch is scheduled for February 17 during the Presidential Dialogue on African Union financial institutions and reforms of the global financial system, part of the 37th Ordinary Session of the AU Assembly.
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The global financial architecture, encompassing international financial institutions and regulatory mechanisms, profoundly influences Africa's economic trajectory.
African leaders have consistently called for reforms to rectify the existing quota system, which often favours wealthier nations, leaving Africa with disproportionately limited resources and influence.
In response to these challenges, African nations established the African Multilateral Financial Institutions (AMFIs), including entities like the African Export-Import Bank (AfreximBank), Trade and Development Bank (TDB), Africa Finance Corporation (AFC), African Reinsurance Corporation (Africa Re), and African Trade and Investment Development Insurance (ATIDI).
Together, these institutions hold assets exceeding $53 billion and have attracted over $8.6 billion in equity investment, primarily from African countries.
The Africa Club aims to bring these institutions together to collaboratively address financing challenges and support sustainable economic development and integration objectives across the continent. Membership will be open to all African multilateral financial institutions aligned with the club's objectives, purposes, and criteria.
These financial institutions have played a crucial role in financing and investing in the continent, contributing significantly to African integration through initiatives such as the African Continental Free Trade Area (AfCFTA) and AU Agenda 2063.
While the launch of the Africa Club marks a significant step forward, the AU and African leaders have long emphasised the establishment of an African Monetary Union.
Proposals include harmonising monetary zones and creating three AU financial institutions—the African Central Bank (ACB), the African Monetary Fund (AMF), and the African Investment Bank (AIB).
Additionally, discussions have taken place on the feasibility of creating a Pan-African Stock Exchange (PASE), although none of these institutions has yet garnered the necessary ratifications to come into force.
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