African multilateral finance institutions dedicate $62b to continent’s development 

The Alliance of African Multilateral Financial Institutions (AAMFI) has jointly dedicated $62 billion fund to address the critical trade and investment gaps across the continent. 

The support would go towards addressing agriculture value chain challenges to increase intra-African trade and enhance the capacity of Small and Medium-sized Enterprises (SMEs) to export.  

Also known as the Africa Club, the Alliance, set up by treaty, was launched in collaboration with the African Union Commission by African Heads of State on February 17, 2024 in Addis Ababa. 

This occurred on the margins of the 37th Ordinary Session of the Assembly of the Heads of State and Government of the African Union. 

The AAMFI’s membership includes Africa Finance Corporation (AFC), African Export-Import Bank (Afreximbank), Trade and Development Bank Group (TDB Group), and African Reinsurance Corporation (Africa Re). 

The rest are, African Trade and Investment Development Insurance (ATIDI), Shelter Afrique Development Bank (SHAFDB), ZEP-RE (PTA Reinsurance Co.), African Solidarity Fund (ASF) and East African Development Bank (EADB). 

“The Alliance’s formation underscores Africa’s commitment to self-reliance and sustainable economic development, leveraging home-grown solutions and resources for the continent’s advancement,” said, Professor Benedict Oramah, Chairperson, AAMFI. 

He was speaking at a press briefing in Accra on Saturday, July 20, on the margins of the 6th mid-year coordination meeting of the African Union (AU). 

Prof Oramah said the coming together of the African multilateral financial institutions was in response to the inadequacies of the global and continental financial architecture. 

“It is a critical initiative that will be transformative for the continent, ensuring the effective mobilisation of our domestic resources, as well as international resources towards the continent’s development,” he said. 

Mr Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, African Union Commission, said the continent’s sustainable and accelerated development required a broadened collaboration, which the Alliance would offer. 

He called for a strong collective effort from the Alliance in gathering evidence and proposing solutions to reform the global financial architecture and an effective comparability debt treatment for African countries under the G20 framework. 

Mr Thierno-Habib Hann, Chief Executive Officer (CEO), Shelter Afrique, said the implementation of initiatives and funding support to businesses would help alleviate poverty on the continent and create wealth for its people. 

“All our institutions are working in different areas and historically in silos and today what we’re pushing for is to work together for African interest, because it’s all about the people, our families, impact, the growth of Africa, and creating jobs and wealth for the continent,” he said. 

“This is really the symbol of integration, which tells us that Africa is changing, has hope and a future because at the end of the day, it’s about looking at Africa from an integrated approach,” Mr Hann added. 

He also said the Alliance would serve as an entry point for international multilateral financial institutions to collaboratively work towards addressing trade and investment bottlenecks in Africa. 

Source: GNA  

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