African Central Bank Governors gathered in Abuja to push for deeper intra-African trade and advocate for reforms to the global financial system, which they argued was skewed against the continent. The meeting was hosted by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, as part of the African Caucus, an annual forum that prepares the continent’s contributions to the International Monetary Fund (IMF) and World Bank’s annual meetings.
In a statement issued by the leaders, they emphasized that the central aim of the gathering, held at the Transcorp Hilton Hotel, was to address the imbalances within the global financial architecture. African economic leaders noted that this structure disproportionately favored developed economies, often to the detriment of developing nations, many of which were grappling with significant debt challenges.
“The primary goal of the meeting was 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,” the statement read.
Keynote speakers included James Garang, Governor of the Bank of South Sudan, who had been instrumental in leading reforms to integrate South Sudan’s financial system with the global economy. Garang highlighted several pressing issues, stating, “Our regional and global agenda today includes 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.”
Prominent African leaders such as Kenyan President William Ruto, African Development Bank (AfDB) President Akinwumi Adesina, and Africa Export-Import Bank (Afreximbank) President Benedict Oramah also took a strong stance in favor of financial reforms. They contended that the current international financial system unjustly labeled Africa as a risky borrower, despite its vast economic potential.
“We need to transform this architecture to give Africa a fair chance to turn its immense potential into opportunity,” President Ruto remarked.
In November 2023, Garang spearheaded a modernization effort at the Bank of South Sudan, prioritizing transparency and accountability. The restructuring was aimed at enhancing the bank’s ability to fulfill its mandate and strengthen its oversight of the financial sector.
Global public debt reached a staggering $313 trillion in 2023, with developing economies bearing a significant portion of this burden. United Nations data revealed that in 25 developing countries, over a fifth of tax revenue was allocated to servicing external debt, leaving approximately 3.3 billion people—around 40 percent of the global population—spending more on interest payments than on critical services such as health and education.
AfDB President Adesina underscored the urgency of financial reforms, noting, “Africa needs $1.3 trillion annually to meet its sustainable development goals by 2030, but this cannot happen without a more responsive, inclusive, and accountable international financial system.”
The African Caucus, established in 1963, has remained a vital platform for amplifying the voices of African Governors within the Bretton Woods Institutions on key development issues. Representing all 54 African countries, the Caucus meets twice yearly to consolidate views and convey them to the leadership of the IMF and World Bank through a formal Memorandum.
As the discussions concluded, there was a strong sense of optimism among the attendees that the outcomes would pave the way for a more equitable financial system that better serves the needs of Africa and other developing regions.
