The Alliance of African Multilateral Financial Institutions (AAMFI) has called for the increased mobilisation of resources to fund sustainable development in Africa. AAMFI made the call at a high-level side event at the 2024 Annual Meetings of the International Monetary Fund and the World Bank Group. This side meeting was organised jointly by AAMFI, the African Union (AU) and independent global development advisory firm AfriCatalyst.

“Our biggest challenge is job creation – we need quality, sustainable jobs for young people to reduce poverty and inequality,” highlighted AAMFI first vice chairperson and Africa Finance Corporation president and CEO Samaila Zubairu. He urged that African institutional savings be mobilised to give Africans greater ownership of the development of their continent, and called for the creation of a framework that would facilitate the capitalisation of banks and development finance institutions by African governments and institutions.

“There is a need to work with the African stock exchanges association so that those countries which do not have stock exchanges, the Alliance can assist in establishing those stock exchanges,” pointed out the AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals Albert M Muchanga.

“African governments have made notable efforts to raise capital, even during challenging times,” observed Afreximbank senior executive VP: finance, administration and banking services Denys Denya. “However, we must continue ensuring that African resources benefit Africa.”

“The amount of global capital that we attract depends on how effectively we can demonstrate value at scale,” affirmed Kenya-based African multinational group Zep-Re (PTA Reinsurance Corporation) MD and CEO Hope Murera. “A regional perspective is always important in this regard.”

“We have substantial liquidity within local pension funds that can be utilised to finance our economies and industries in local currency,” noted Shelter Afrique Development Bank CEO and MD Thiero-Habib Hahn. “Relying on foreign investment and currency is simply not sustainable.”

“Governments often attempt to raise funds domestically, but it is insufficient,” cautioned African Solidarity Fund MD Abdourahmane Diallo. “They then turn to international markets, facing high interest rates due to high-risk perceptions. We need mechanisms to mitigate this risk.”

The AAMFI was formally launched in February this year. Its members included the Africa Finance Corporation, Afreximbank, the Trade and Development Group, African Reinsurance Corporation, African Trade and Development Insurance, Shelter Afrique Development Bank and Zep-Re (PTA Reinsurance Company).