Reforming Africa’s Financial Architecture : a catalyst for agenda 2063
Africa finds itself at a pivotal moment in its development: to achieve the ambitions of Agenda 2063 — notably industrialisation, economic integration, and socio-economic transformation — reforming its financial architecture has become an essential strategic priority. Analysis.
On the sidelines of the 39th African Union Summit held on 14–15 February 2026 in Addis Ababa, African leaders underscored the need to profoundly transform the continent’s financial architecture to enable the sustainable financing of Agenda 2063.
This was highlighted during the “Heads of State and Government Breakfast Dialogue: Strengthening Africa’s Financial Architecture to Finance Agenda 2063,” a summit side event that brought together heads of state, leaders of African financial institutions, and international partners to address development financing.
Africa must increase domestic resource mobilisation and reduce its dependence on external aid
Today, Africa’s financing remains insufficient in the face of massive investment needs, particularly in infrastructure and social services. The African Development Bank (AfDB) estimates that the continent requires significantly increased financing to achieve its growth objectives and close development gaps. In a global context marked by economic uncertainty, the Chairperson of the African Union Commission, Mahmoud Ali Youssouf, sounded the alarm on this structural deficit, stating that Africa must “increase domestic resource mobilisation and reduce its dependence on external aid” in order to build a financial architecture that is “responsive, inclusive, and capable of supporting long-term investment.”
Domestic resource mobilisation
One of the key drivers of this effort is domestic resource mobilisation. Many African countries have yet to fully harness their fiscal capacity or develop their domestic financial markets. Moreover, external financing is often secured under less favourable conditions, forcing some states to allocate a disproportionate share of revenues to debt servicing. According to the African Development Bank, the external public and publicly guaranteed debt of many African countries continues to rise, weighing on national budgets and constraining investment in essential sectors such as education and health.
Strengthening African coordination and financial capacity
In this context, regional and continental frameworks are being advanced to reinforce Africa’s financial coordination and capacity. The New African Financial Architecture (NAFA), promoted notably by the African Development Bank, aims to channel resources toward priority projects and foster coordination among African financial institutions. This includes innovative financing mechanisms, deeper integration of regional financial markets, and improved access to long-term capital suited to structural development projects.
The Alliance of African Multilateral Financial Institutions represents Africa’s collective financial strength
At a preparatory forum in Addis Ababa, Prof. Benedict Oramah, former President of Afreximbank and a central figure in African trade finance, stressed that the union of African financial institutions constitutes a collective force capable of amplifying financing impact across the continent. He stated that “The Alliance of African Multilateral Financial Institutions represents Africa’s collective financial strength, and through coordinated action we will mobilise resources at scale to deliver Agenda 2063.” This statement highlights the importance of a unified rather than fragmented approach to addressing shared financial challenges.
Transparency and financial governance
Another core theme of the discussions was the emphasis on transparency and financial governance. Effective public financial management, transparent capital markets, and robust debt-management frameworks are considered indispensable to strengthening African countries’ credibility on international markets and attracting long-term investment. Without such measures, financing efforts could be undermined by high borrowing costs and persistent risk perceptions.
The global financial system must be more equitable and better aligned with sustainable development priorities, including those of Africa
On the international stage, converging voices are also calling for reform of the global financial architecture so that it better reflects the needs of developing countries. United Nations Secretary-General António Guterres has advocated for stronger representation of developing nations within international financial institutions, arguing that “the global financial system must be more equitable and better aligned with sustainable development priorities, including those of Africa.” This perspective forms part of broader calls to revisit traditional global financing structures so they become fairer and more effective.
Despite ongoing initiatives and dialogue, several experts believe the success of reform will depend on African states’ political will, their capacity to harmonise fiscal and financial policies, and their ability to create credible and effective regional instruments. The transition toward greater financial sovereignty — where Africa predominantly finances its own development projects — is now seen as a strategic pivot for continental integration and the achievement of its long-term objectives.
