Briefing
This briefing examines the role of the African Development Bank (AfDB) in driving reforms to the global financial architecture at a time of mounting debt, widening financing gaps and increasing climate and development pressures across Africa. Published ahead of the AfDB Group’s 2024 Annual Meetings, it situates Africa’s growing debt burden within broader structural weaknesses in the international financial system, including high borrowing costs, declining concessional finance and limited access to global public resources.
The briefing analyses the drivers of Africa’s debt crisis, highlighting unfavourable debt composition, rising reliance on private and non-concessional lending, and increasing debt servicing costs that constrain public spending on development priorities. It assesses how current global mechanisms—such as debt sustainability frameworks, credit ratings and debt restructuring processes—often disadvantage African countries and exacerbate fiscal stress.
Against this backdrop, the briefing sets out priority actions for international financial institutions and outlines how the AfDB could act as a catalyst for reform. It explores the Bank’s potential role in influencing debt sustainability assessments, mobilising and reallocating resources such as Special Drawing Rights, supporting climate and development finance, and strengthening Africa’s voice in global financial decision-making. Overall, the briefing contributes to ongoing debates on how to reform global financial governance to better support Africa’s development and climate goals.
