AU Executive Council of Foreign Ministers calls for fair valuation of economies

The African Union Executive Council of Foreign Ministers has called for a fair valuation of economies as they push for sustained reforms in the trade, climate, and financial systems. The current financial architecture needs restructuring if Africa is to play a proactive role on the global stage. Africa's current global financial standing reveals the stark inequalities it faces. The continent possesses 30% of the world's mineral reserves, including 40% of the gold and up to 90% of its chromium and platinum. It also contains as much as 65% of the world's arable land. Yet, Africa accounts for less than 3% of global trade and only 1% of global manufacturing output. Moreover, in 2023, intra-African trade stood at just 16% compared to intra-European trade at 68%. The entire African continent has an IMF shareholding equal to that of a single country, Germany. These disparities are not just due to a lack of economic potential but to entrenched structural barriers that keep Africa in a cycle of economic dependency. The injustice extends to Africa's credit ratings, which are dominated by external agencies that sometimes apply unfair and subjective assessments to African economies. Only two countries, Botswana and Mauritius, hold investment-grade ratings, while others, despite sound economic fundamentals, are burdened with high risk levels. This situation inflames borrowing costs, stifles investment, and keeps African economies locked in debt cycles. Africa contributed the least to climate change yet is suffering the most from its effects, costing the continent up to 5% of GDP. $10 trillion has been invested globally in clean energy, with Africa receiving only $2 trillion. To address these disparities, the Council proposed five key areas of focus. First, advocating for debt restructuring to allow African nations to invest in their people and development instead of paying exorbitant interest rates. Second, fully harnessing the African Continental Free Trade Area's potential to accelerate investments in infrastructure and manufacturing. Third, prioritizing in-continent representation on Africa's vast mineral wealth to benefit Africans first. Fourth, fostering economic and cultural partnerships with the African diaspora to contribute to Africa's development. Finally, accelerating the African integration to facilitate trade, knowledge transfer, and cultural unity. The ECA remains steadfast in its commitment to bridge the gap between Africa and the diaspora, reclaim economic sovereignty, and secure a future where all Africans can live with dignity and prosperity.