- Africa’s future remains uncertain as economies weather chronic funding shortfalls, persistent trade disruptions, and a sharp rise in debt burdens.
- Faced with these challenges, however, investing in smart infrastructure, and supply chains that power intra-African trade could be among the most transformative plans of the decade.
- Enhancing tax revenue through digitalisation, widening the tax base, and administrative efficiency could also help economies to thrive.
At a time when the global economic order is being reshaped by cascading crises—from pandemics and climate change to geopolitical conflicts and mounting debt—Africa’s future remains uncertain.
During African Consultative Group meeting with IMF Managing Director Kristalina Georgieva, held on the sidelines of the IMF-World Bank Spring Meetings in Washington D.C., Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa (ECA), delivered a compelling vision for the continent: Africa must lean into resilience, inclusion, and transformation to secure its future.
While addressing global financial leaders and policymakers, Gatete offered not just a diagnosis of Africa’s challenges but a roadmap for structural reforms that could redefine the continent’s economic narrative.
For CEOs, investors, and policymakers across Africa and beyond, his remarks serve as both a call to action and a framework for opportunity.
Navigating uncertainty to shape Africa’s future
Gatete acknowledged the turbulence African economies are weathering: chronic funding shortfalls, persistent trade disruptions, and a sharp rise in debt vulnerabilities.
“We are meeting at a critical time of profound uncertainty,” he said, pointing to the interconnected and multifaceted pressures facing economies across Africa.
Despite commendable reforms at the IMF, including increased access limits to the General Resources Account (GRA) and changes to the Arrears Policy to support debt restructuring, Gatete noted that more substantial efforts are needed to shore up economies.
He lauded the reformed Resilience and Sustainability Trust (RST) for its potential to catalyze financing and support pandemic preparedness, but noted that Africa’s needs exceed current suite of solutions on the table.
Unlocking opportunity: AfCFTA and regional integration
One of Gatete’s core recommendations for driving Africa’s transformation is the urgent implementation of the African Continental Free Trade Area (AfCFTA). Describing it as a central pillar of the continent’s strategy, he stressed that unlocking AfCFTA’s potential requires more than market access—it demands the building of competitive, climate-smart, and digitally enabled regional value chains.
That means harmonising industrial policies, modernising logistics infrastructure, and using trade as a lever for industrial development. For business leaders, this presents significant opportunities: investing in smart infrastructure, supply chains, and digital platforms that power intra-African trade could be among the most transformative moves of the decade.
Mobilising resources: Tax reform and domestic capital
At the centre of Gatete’s push is the urgent need to mobilise domestic resources. His plan includes enhancing tax revenue through digitalisation, widening the tax base, and improving administrative efficiency.
But beyond traditional tax systems, he underscored the need to combat illicit financial flows, curb revenue leakages, and develop vibrant domestic capital markets.
These initiatives are vital for African governments to move away from excessive external borrowing and instead leverage internal strengths to fund development priorities. For policymakers and financial institutions, this signals a strong shift toward fiscal sovereignty and smarter, tech-driven revenue strategies.
Global finance reforms
Gatete also raised a critical geopolitical issue: Africa’s underrepresentation in global financial governance. He urged reforms to the global financial architecture that would grant African voices greater influence in platforms such as the G20, the Fourth International Conference on Financing for Development (FfD4), and the proposed UN Tax Convention.
He argued that Africa’s inclusion is not just a matter of fairness but of necessity, especially as the continent continues to bear the brunt of global economic shocks it did not create.
For African business leaders and trade negotiators, this underscores the importance of speaking with a unified voice in global forums, aligning common positions to protect and promote African interests.
A partnership-driven path forward
Overall, Gatete’s message was that of partnership. He acknowledged the IMF’s evolving role and expressed ECA’s continued commitment to collaborating with global financial institutions to achieve tangible progress. “ECA remains your committed partner in this journey,” he said, affirming his belief that shared challenges demand shared solutions.
In an age where global uncertainties are the new norm, policymakers in Africa have the in-tray full, to define the continent’s future.
Read also: Is the AfCFTA plan simply a playground for the big players?
