The 54th Session of the Conference of African Ministers of Finance, Planning and Economic Development (CoM 2022) ended with renewed calls for improved liquidity and better fiscal space for African countries as they recover from multiple global crises.
The draft resolutions approved by the Committee of Experts recognized that in spite of the best national and global efforts, the effects of COVID-19, the war between Russia and Ukraine and worsening climate conditions “are widening the development financing gap in Africa and augmenting the continent’s debt vulnerabilities”.
In response to the above, the experts implored the ECA “to support the extension of the Debt Service Suspension Initiative for two more years” and also to support a rescheduling of “an additional period of five years for interested countries”.
Furthermore, the ECA is expected to “advocate and mobilize support for the reallocation of special drawing rights to countries that are most in need” as well as push for the “reform of the international financial architecture to allow African countries gain access to resources more easily”. These and other measures are requirements for Africa to meet its targets of Sustainable Development Goals (SDGs) by 2030 and the African Union’s Agenda 2063.
UN Under-Secretary-General and Executive Secretary of the ECA, Vera Songwe, explained that the ECA will work with African governments and institutions to explore the innovative finance options for Africa’s recovery that came up during the session.
Ms. Songwe cited COP 27 as an opportunity to press for innovative financing. She said, “We look forward to seeing carbon financing. We also want to advocate that Africa can fall on gas as we transition to sustainable energy. This will transform our economies through industrialization.”
On his part, the Chair of the Ministerial Committee of the session and Senegal’s Minister of Economy, Planning and International Cooperation, Amadou Hott, was hopeful that “the resolutions can be effectively worked up upon within a year or at least before the next session”.
The annual Conference of African Ministers of Finance, Planning and Economic Development (CoM) is the ECA’s largest annual event and provides an opportunity for participants to debate key issues on Africa’s development, and to discuss the think tank’s performance in delivering on its mandate.