African central bank governors meet in Abuja, advocate economic reforms

African Central Bank Governors have convened in Abuja on Thursday to push for deeper intra-African trade and advocate for reforms to the global financial system, which it believes is skewed against the continent.

According to a statement by the leaders, the meeting, being hosted by Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is part of the African Caucus, an annual gathering that prepares input for the International Monetary Fund (IMF) and World Bank’s annual meetings.

It said the central aim of the meeting, which is taking place from at the Transcorp Hilton Hotel, is to address the imbalance within the global financial architecture.

This structure, according to African economic leaders, favours developed economies at the expense of developing nations, many of which are grappling with significant debt challenges.

“The primary goal of the meeting is to address intra-African trade as a crucial catalyst for sustainable economic growth and to prepare input for the IMF and World Bank’s annual meetings,” the statement read.

Keynote speakers include Governor of the Bank of South Sudan, James Garang, who has led reforms to integrate South Sudan’s financial system with the global order.

“Several issues top our regional and global agenda today, including the realisation that our planet faces unprecedented existential threats; poverty is on the rise; and geoeconomic fragmentation is increasing.

“The effects of climate change—floods and droughts—and geopolitical conflicts pose significant risks and challenges for monetary policy globally,” Mr Garang was quoted as saying.

African leaders such as President William Ruto of Kenya, African Development Bank (AfDB) President Akinwumi Adesina, and Africa Export-Import Bank (Afreximbank) President Benedict Oramah, have been vocal advocates for financial reforms.

They argue that the current international financial system unjustly labels Africa as a risky borrower despite its vast potential.

“We need to transform this architecture to give Africa a fair chance to turn its immense potential into opportunity,” President Ruto was quoted as saying.

According to the statement, Mr Garang had in November 2023, spearheaded a modernisation effort at the Bank of South Sudan, prioritising transparency and accountability.

The bank has undergone a restructuring to improve its ability to fulfil its mandate and strengthen its oversight of the financial sector.

Global public debt reached $313 trillion in 2023, with developing economies bearing a significant burden. According to United Nations figures, over a fifth of tax revenue in 25 developing countries went towards servicing external debt, leaving approximately 3.3 billion people—around 40 per cent of the global population—spending more on interest payments than on health or education.

Mr Adesina highlighted the need for financial reforms, stating, “Africa needs $1.3 trillion annually to meet its sustainable development goals by 2030, but this cannot happen without a more responsive, inclusive, and accountable international financial system.”

The African Caucus, established in 1963, aims to strengthen the voice of African Governors in the Bretton Woods Institutions on development issues pertinent to Africa.

Representing all 54 African countries, the Caucus meets twice yearly to consolidate views and convey them to the heads of the IMF and World Bank through a Memorandum.