Commonwealth and African Union Lead Call for Global Financial System Reform

91

During the Presidential Dialogue alongside the 37th Ordinary Session of the African Union Assembly, leaders emphasized the urgent need to reform the existing global financial system, which often favors wealthier nations at the expense of Africa’s limited resources and influence.

The dialogue, held in Addis Ababa from February 16 to 20, gathered heads of state, government officials, and international organizations to address pressing economic issues, including climate adaptation and sustainable development financing.
Commonwealth Secretary-General, The Rt Hon Patricia Scotland KC, highlighted the systemic imbalance within the global financial architecture, emphasizing its failure to address Africa’s vulnerability to climate change. She advocated for new financing mechanisms, including the Commonwealth Universal Vulnerability Index, designed to allocate development funding to countries with the greatest need.

Twenty-one Commonwealth countries are members of the African Union, contributing to various multilateral organizations and development banks supporting African growth and resilience. Secretary-General Scotland underscored the importance of pooling knowledge, expertise, and finance to drive meaningful change across the continent.

The dialogue also marked the launch of the Alliance for African Multilateral Financial Institutions (AAMFI) – Africa Club, aimed at addressing financing challenges and supporting sustainable economic development in Africa. The alliance includes key African Multilateral Financial Institutions (AMFIs) such as AfreximBank, TDB, AFC, Africa Re, and ATIDI, with assets exceeding US$53 billion.

Secretary-General Scotland discussed collaboration opportunities with AfreximBank President Benedict Oramah to support small and vulnerable states across the Commonwealth.
In discussions around transparency and Africa’s debt crisis, Secretary-General Scotland introduced the Commonwealth Meridian, a cutting-edge software facilitating public debt management in Botswana, St. Vincent and the Grenadines, Antigua and Barbuda, and Nigeria.

In Addis Ababa, Secretary-General Scotland engaged with government ministers to deepen partnerships between the Commonwealth and the African Union, focusing on global trade advocacy, sustainable development goals tracking, and climate programs.
The Commonwealth delegation, led by Secretary-General Scotland and supported by Prof Luis Franceschi, Abiola Sunmonu, and Hafsa Maalim, underscored a commitment to fostering collaboration and driving positive change across Africa.