Minister of Planning, Economic Development, and International Cooperation Commends the Final Statement from the African Caucus 2024 Meeting in Nigeria

 

H.E. Minister Mashat*: The need for financial structure reform to reflect the needs of developing countries and support their efforts toward sustainable development

Increased intra-African trade drives economic development efforts and fosters inclusive and sustainable growth

Discussion on activating the final statement during the African Caucus meetings at the World Bank Annual Meetings next October

 

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt's Governor at the World Bank, commended the final statement issued from the African Caucus meeting of the World Bank and International Monetary Fund Governors, which took place from August 1 to 3, 2024, in Abuja, Nigeria. The meeting was titled “Facilitating Intra-African Trade: Catalyst for Sustainable Development in Africa”, and was held under the patronage of His Excellency President of Nigeria, President Bola Ahmed Tinubu. The session was chaired by the Nigerian Minister of Finance, Mr. Wale Edun, alongside the IMF and World Bank Governors for Nigeria. The Ministry participated through the Central Department for Multilateral Development Cooperation and Financing.

 

The final statement from the meeting highlighted four key areas to enhance intra-African trade: (1) strengthening the inclusive payment system in Africa and accelerating digitalization, (2) improving access to and costs of energy, (3) maximizing benefits from partnerships with Multilateral Development Banks (MDBs), and (4) reforming the global financial structure. It emphasized that the rising geopolitical tensions necessitate that Bretton Woods institutions support member countries based on principles of balance and neutrality, in line with their respective policies.

 

In her remarks, H.E. Minister Al-Mashat emphasized the importance of reforming the global financial structure and fostering partnerships with MDBs to enhance African trade. H.E. Dr. Al-Mashat noted that increasing intra-African trade bolsters economic development efforts and stimulates inclusive and sustainable growth.

 

The statement underscored the importance of enhancing Africa's inclusive payment system and accelerating digitalization, as well as strengthening regional financial market integration and cross-listing of securities to boost investment. It also highlighted the need to accelerate financial integration to diversify asset allocation, addressing liquidity challenges that have continually hindered trade and investment in the continent.

 

The statement called for the timely adoption of the Pan-African Payment and Settlement System (PAPSS) by all African Union members and urged MDBs to support this initiative by enhancing payment infrastructure and digital platforms in Africa. This will enable all countries to benefit from the African Continental Free Trade Area (AfCFTA).

 

Furthermore, the final statement emphasized the necessity of developing high-quality regional ICT infrastructure, improving institutional, technical, and human capacities within governments, and enhancing private sector investments to strengthen existing payment systems. It also highlighted the need to explore cost-effective cross-border transaction mechanisms, interoperability, data analysis, and strengthen security protocols against fraud, money laundering, cybersecurity threats, and rapid response to breaches.

 

Additionally, it stressed expanding innovative investments in digital infrastructure to remove technology barriers and enable technological innovations for effective payment infrastructure and robust payment solutions that meet standards of efficiency, access, management, and resilience.

 

The final statement also addressed the critical need to accelerate energy access in Africa, intensify technical assistance and financing, and commit to implementing the initiative launched by the World Bank and the African Development Bank in collaboration with the United Nations to provide electricity to 300 million Africans by 2030. It further emphasized the importance of doubling investments in transport and energy infrastructure, helping African countries improve regulatory and legal environments to attract competitive private investments in the energy sector, leveraging partnerships with MDBs to fulfill their commitments, and ensuring the availability and access to concessional financing, while encouraging the provision of new and innovative tools. Moreover, it highlighted the need for cooperation with MDBs in Africa and African think tanks.

 

Lastly, the statement discussed the need to find sustainable debt solutions that create fiscal space for developing countries to invest effectively in achieving Sustainable Development Goals, enhance financial stability, and accelerate reforms to remove barriers to private investments. It also reaffirmed the crucial role of the International Development Association (IDA) within the World Bank Group in providing concessional financing, especially for Sub-Saharan African countries, to address ongoing and emerging challenges such as climate change, food insecurity, energy and water shortages, digital transformation, and regional integration.