AAMFI Welcomes AU Support for Multilateral Financial Institutions’ Creditor Status
The Alliance of African Multilateral Financial Institutions (AAMFI) has welcomed the endorsement from the African Union (AU) Ministers of Finance and Central Bank Governors regarding the Preferred Creditor Status (PCS) of African Multilateral Financial Institutions (AMFIs).
This endorsement was confirmed during the third meeting of AAMFI’s Governing Council, held alongside the AU Mid-Year Coordination Meeting in Accra, Ghana.
The endorsement was formalized at the 7th Ordinary Session of the AU Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning, and Integration in Tunis, Tunisia.
The STC Ministerial declaration highlighted the crucial role AMFIs play in Africa’s financial infrastructure and endorsed AAMFI’s importance in fortifying the continent’s financial framework, aligning with the African Union’s Agenda 2063.
The Ministers and Central Bank Governors voiced their strong support for AMFIs, recognizing their pivotal role in the continent’s development. They emphasized the need to bolster the capital and credit ratings of these institutions to secure essential funding for Africa’s growth.
The Ministers addressed concerns over recent reports questioning the Preferred Creditor Status of AMFIs, underscoring its significance in securing development financing and engaging with Credit Rating Agencies.
The Ministerial declaration affirmed the rights conferred on AMFIs by African Governments, including PCS, which is vital for reducing borrowing costs and deepening capital markets. The Ministers urged AU Member States to uphold their commitments to AMFIs and respect their treaty obligations. They recommended that the AU Assembly mandate the African Union Commission (AUC) to collaborate with AAMFI in engaging key stakeholders, including the G20.
AAMFI’s Governing Council acknowledged that the Alliance exemplifies Africa’s innovative approach to addressing financing gaps and ensuring sustainable development. AMFIs, established by African States under treaty, have demonstrated resilience in times of crisis, generating profits and investment returns for shareholders while fulfilling their development mandates.
The African Union’s firm stance against attempts to weaken the PCS of African-owned and controlled multilateral financial institutions underscores the crucial role these institutions play in Africa’s financial architecture. This support ensures that AMFIs can continue to aid African sovereigns in their development efforts and drive economic growth.
