Africa faces a daunting task of bridging a USD 3.3 trillion financing deficit over the next decade, as highlighted by the African Union Development Agency-New Partnership for Africa’s Development (AUDA-NEPAD) during the 37th AU summit in Addis Ababa.
CEO Nardos Bekele emphasized the need for intensified resource mobilization efforts, given the estimated requirement of USD 8.3 trillion for development financing in the coming decade. AUDA-NEPAD, in collaboration with the AU Commission, has devised a comprehensive development plan, the second under Agenda 2063, to address this challenge. The plan aims to coordinate investments at national, regional, and continental levels to prevent resource wastage.
She stressed the importance of innovative funding mechanisms and the establishment of AU Financial Institutions to meet Africa’s financing needs. Additionally, African Multilateral Financial Institutions (AMFIs) play a crucial role in supporting African states during crises and fostering economic integration.
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The establishment of the Alliance of African Multilateral Financial Institutions (AAMFI), or the Africa Club, further enhances collaboration and coordination among these institutions. The 37th AU summit will deliberate on the establishment and strengthening of AU financial institutions to bolster Africa’s financial resilience and sustainable development.
