- Tsaone Segaetsho
ONE Campaign, an international justice activism group, which among other initiatives fights against financial injustices in African and other developing countries, is calling on the African Union (AU) and African leaders to take a stand against the continent’s debt vulnerabilities. The organisation also condemns the imperialist mentality of deliberately burdening developing nations with debt.
“Africa must push for a new, fit-for-purpose global financial architecture, one that enables the continent to break free from the shackles of debt, secure affordable capital, and invest in a future of shared prosperity,” said ONE Campaign ahead of last month’s 38th AU Summit in Addis Ababa.
In an exclusive interview with The Executive Africa, ONE Campaign’s Executive Director, Serah Makka, said the organisation recognises the 38th AU Summit as a significant step towards addressing Africa’s financial challenges and advancing a more equitable global financial system.
“The Summit underscored the importance of strengthening Africa’s financial resilience by advocating for reforms in international financial institutions and mechanisms that support fairer access to concessional financing,” said Makka.
Makka also quoted AU Chairperson Azali Assoumani, who emphasised the urgency of addressing Africa’s debt vulnerabilities, noting that achieving sustainable development requires structural reforms to ensure African nations are not disproportionately burdened by high borrowing costs.
Reflecting further on the Summit, Makka said it reaffirmed Africa’s collective commitment to shaping a new global financial architecture that reflects the continent’s development priorities and addresses longstanding concerns over systemic financial inequalities. The approval of the African Financial Stability Mechanism (AFSM) was a notable milestone, reinforcing efforts to enhance financial stability across the continent, she added.
The AFSM is a continental initiative aimed at strengthening financial stability and resilience. It is hosted by the African Development Bank (AfDB) as a platform to secure its own credit rating, facilitating borrowing from international capital markets and providing concessional financing to member states. The initiative prioritises proactive financial management rather than crisis-driven interventions. If effectively implemented, projections indicate that the AFSM could result in an estimated $20 billion in savings on debt servicing costs by 2035.
“This milestone reflects Africa’s commitment to strengthening financial sovereignty and aligns with the ONE Campaign’s advocacy for addressing systemic financial inequalities that contribute to high borrowing costs for African countries. The AFSM marks a significant step towards securing affordable capital and fostering sustainable economic growth across the continent,” said Makka.
According to ONE Campaign’s Executive Director, while the AU Summit advanced financial stability through the launch of the AFSM, discussions did not explicitly include the replenishment of the African Development Fund (ADF-17), which has a target of $25 billion.
“The ADF-17 remains a critical financing instrument for supporting investments in infrastructure, healthcare, education, and climate resilience, all of which are essential for Africa’s sustainable development. Ensuring adequate replenishment of the ADF-17 will be key to unlocking long-term concessional financing and reinforcing Africa’s ability to drive its own development priorities,” Makka concluded.
