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PH: DR: The African Alliance of Multilateral Financial Institutions (AAMFI) welcomes the decisions of the African Union (AU) Ministers regarding the privileged creditor status of African Multilateral Financial Institutions
The ministerial statement highlights the importance of the rights granted by African governments to AMFIs, including preferred creditor status (PCS), which are essential for reducing borrowing costs and deepening capital markets. .
ACCRA, Ghana, August 2, 2024 / – The African Association of Multilateral Financial Institutions (AAMFI) held the third meeting of its Board of Directors, on the sidelines of the bi-annual coordination meeting of the African Union, held in Accra ( Ghana), when she welcomed the support of the Federation with the Ministers of Finance and Governors of Central Banks of the African Union (AU) at the seventh ordinary session of the Special Technical Committee (STC) of the African Union on Finance, Monetary Affairs, Economic . Planning and Integration, held in Tunis (Tunisia).
The ministerial declaration and the decisions of the CTS showed the main role of the African Multilateral Financial Institutions (AMFI) in the financial architecture of the continent. AAMFI received strong support from the meeting and was recognized by the Special Technical Committee for its vital role in strengthening the continent’s financial framework and promoting the African Union Agenda 2063. Ministers and Central Bank Governors confirmed the vital role of African Multilateral Financial Institutions in the development of the continent and are committed to strengthening AMFI’s capital and credit levels to mobilize essential funds for Africa’s growth.
Ministers and Central Bank Governors have expressed concern over recent reports questioning the Preferred Creditor Status (PCS) of AMFIs, highlighting the importance of this status in working with organisations. credit rating and obtaining financing for development. The ministerial statement highlights the importance of the rights granted by African governments to AMFIs, including Preferred Creditor Status (PCS), which are essential for reducing borrowing costs and deepening capital markets. Ministers and Central Bank Governors urged AU Member States to uphold their commitments regarding AMFIs and comply with their treaty obligations. They also recommended that the AU Assembly mandate the African Union Commission (AUC) to work with AAMFI to engage key stakeholders, including the G20. The Ministers reaffirmed their commitment to the rapid establishment of African Union Financial Institutions, in particular the African Monetary Institute (AMI) and the African Financial Stability Mechanism (AFSM).
The AAMFI Board noted that the Alliance is an example of Africa’s innovative approach to bridging funding gaps and ensuring sustainable development. AMFIs, established by African contracting states, have demonstrated that they are able to meet the needs of member states in times of crisis, are commercially viable and generate profits and returns on investment for shareholders while as they carry out their important development mandates.
The African Union’s rejection of recent attempts to weaken the preferred creditor status of African owned and controlled multilateral financial institutions, and the AU’s commitment to strengthening AMFIs, reinforces the central role of these institutions in African financial architecture. This will allow AMFIs to continue to support the development of African sovereigns and promote economic growth.
AAMFI remains committed to working closely with AU Member States, the AU and other stakeholders to implement these critical decisions, advancing the goals of Agenda 2063. Members of the AAMFI remains engaged and proactive in supporting these decisions, ensuring that their collective efforts align with it. the AU’s vision for a strong and sustainable financial architecture in Africa.
About AAMFI:
The African Association of Multilateral Financial Institutions (AAMFI) is an association of African owned and controlled multilateral financial institutions (AMFI) established to promote the interests of its African member states in global finance. promote and protect AMFI’s role in finance. protecting and promoting these interests. AAMFI’s mandate is to promote collaboration, cooperation and coordination among its members in finding solutions aimed at promoting and supporting the goals of sustainable economic development and African integration, according to the individual orders that are members of members and within the framework of their goals. development goals. The founding members of AAMFI are the African Finance Corporation (AFC), the African Export-Import Bank (Afreximbank), the Trade and Development Banking Group (TDB Group), the African Reinsurance Corporation (Africa Re), the African Trade and Investment Development Insurance. (ATIDI), Shelter Afrique Development Bank (SHAFDB) and ZEP-RE (PTA Reinsurance Company). The East African Development Bank (AfDB) and the African Solidarity Fund (ASF) are the newest members to join the Alliance.
The Alliance was launched in collaboration with the African Union Commission by African Heads of State, on the sidelines of the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union on February 17, 2024 in Addis Ababa, Ethiopia.
The African Alliance of Multilateral Financial Institutions (AAMFI) hosted the third meeting of its Board of Governors on the sidelines of the biennial coordination meeting of the African Union, held in Accra, Ghana, when he welcomed the support of the Federation by the Ministers of Finance and Governors of the Central Bank of the African Union (AU) at the 7th Ordinary Session of the African Union Special Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning and Integration, held in Tunis, Tunisia.
The CTS declaration and ministerial decisions reflect the central role of African Multilateral Financial Institutions (AIFMAs) in the financial architecture of the continent. The AAMFI received strong support from the meeting and was recognized by the Special Technical Committee as essential to strengthening the continent’s financial framework and advancing the African Union Agenda 2063. Ministers and central bank governors reaffirmed the vital role of African multilateral financial institutions in the continent’s development and are committed to strengthening AIFM capital and credit standards to mobilize critical funding for Africa’s growth.
Ministers and central bank regulators have expressed concern over recent reports questioning the preferred creditor status (PCS) of A-MFIs, highlighting the importance of this status in relations with rating agencies. and receiving development funding. The ministerial declaration underlines the importance of the rights granted by African governments to A-MFIs, including preferred creditor status (PCS), which are essential for reducing borrowing costs and capital markets to deepen. Ministers and central bank governors urged AU member states to uphold their commitments to AIFMs and adhere to their treaty obligations. They also recommended that the AU Assembly order the African Union Commission (AUC) to collaborate with the AIFM to engage key stakeholders, including the G20. The ministers reaffirmed their commitment to the rapid establishment of financial institutions of the African Union, especially the African Monetary Institute (AMI) and the African Financial Stability Facility (MAFS).
AIFM’s Board of Governors noted that the Alliance is an example of Africa’s innovative approach to bridging funding gaps and ensuring sustainable development. AIFMs, established by African contracting states, have proven to be able to meet the needs of member states in times of crisis, to be commercially viable and to generate profits and returns on investment for shareholders. , while fulfilling their important developmental mandates.
The African Union’s rejection of recent attempts to weaken the preferred creditor status of African owned and controlled multilateral financial institutions, and the AU’s commitment to strengthening AIFMs, reinforces the central role of these institutions in the financial architecture of Africa. This ensures that AIFMs can continue to support the development of African states and drive economic growth.
AAMFI remains committed to working closely with AU Member States, the AU and other stakeholders to implement these critical decisions and advance the goals of Agenda 2063. a vision for a strong and sustainable financial architecture in Africa.
About AAMFI:
The Association of African Multilateral Financial Institutions (AAMFI) is an alliance of African owned and controlled African Multilateral Financial Institutions (AIFMs), established to promote the interests of their African Member States in global finance and to protect the role of the AIFM. in protecting and promoting these interests. The mandate of the AIFM is to promote cooperation, collaboration and coordination among its members to find solutions aimed at promoting and supporting sustainable economic development and integration goals in Africa, in accordance with the individual orders that are members of members and within the framework of the development. goals. The founding members of AAMFI are the African Finance Corporation (AFC), the African Export-Import Bank (Afreximbank), the Trade and Development Banking Group (TDB Group), the African Reinsurance Corporation (Africa Re), Africa Trade and Investment Development. Insurance (ATIDI), Shelter Afrique Development Bank (SHAFDB) and ZEP-RE (PTA Reinsurance Company). The East African Development Bank (EADB) and the African Solidarity Fund (ASF) are the newest members of the Alliance.
The Alliance was launched in collaboration with the African Union Commission by African Heads of State, on the sidelines of the 37th ordinary session of the Assembly of Heads of State and Government of the African Union, on 17 February 2024 in Addis Ababa, Ethiopia.
