African Central Bank Governors are calling for a significant reduction in borrowing costs for African nations to promote efficient development across the continent.
They are also advocating for a unified stance at global financial forums such as the International Monetary Fund (IMF) and the World Bank.
Dr. James Alic Garang, Governor of the Bank of South Sudan and Chair of the Monetary Affairs Committee for the East African Community, made these remarks on the sidelines of the ongoing Africa Caucus meeting of African Central Bank Governors in Abuja.
Addressing the critical issue of equitable financing, Garang emphasised the need for the forum to prioritize this topic.
According to him, “I think this is one of the issues that will be tackled in the memorandum and also in the declaration. There is a need to reform global financial architecture. It revolves around many things but I’ll just highlight three things. One is the need to reduce the cost of borrowing, enhance access to finance, and harmonize policies among ourselves, ensuring that Africa’s voices are heard at the table.”
Garang also referenced earlier discussions led by Ambassador Amina Mohammed on the G20 and Ambassador Albert M. Muchanga of the African Union Commission, stressing the importance of Africa’s participation in global financial decision-making.
“These topics will be included in the memorandum, alongside issues related to energy access where the African Development Bank and the World Bank are leading efforts to support the continent,” he added.
African Central Bank Governors, he said, are concerned about the rising youth population.
Garang indicated that an actionable plan to address youth unemployment would be developed.
“The Governors are acutely aware of the high levels of youth unemployment in the region and across the continent. The memorandum will include a section dedicated to improving youth employment and opportunities. This issue is not unique to any single country, and the Governors are committed to implementing policies that address youth employment comprehensively,” he noted.
In his speech at the event, the Central Bank of Nigeria Governor, Olayemi Cardoso said Africa stands at a crossroads, with unprecedented opportunities for development alongside significant challenges.
To navigate this complex landscape and set the continent on a path of sustainable economic growth, he said the continent must leverage the support of its global partners.
He said, “This is where the International Monetary Fund (IMF) and the World Bank Group (WBG) play a critical role. Their expertise and resources can provide the essential impetus needed to unlock the continent’s vast potential.
“The continent now stands on the threshold of a new era in African economic cooperation through the African Continental Free Trade Area (AfCFTA), the largest such agreement in the world by both area and number of countries.”
“As monetary authorities, we have the responsibility to formulate policies that enhance trade among countries on the continent. We can achieve this by fostering a financial landscape that encourages collaborative research and development (R&D) to support our industries and generate economic wealth for our growing populations.
“Decisions on currency convertibility, cross border transactions, payment systems, cross border movements of our peoples, goods, and services, as well as financial policy, will be instrumental to determining the success of the AFCTA.
“Nigeria, like many other African countries, faces economic challenges. Nonetheless, we are committed to the vision of a united and economically integrated Africa. By sharing our experiences, including both successes and setbacks, we aim to contribute to paving the path toward sustainable and inclusive economic growth that benefits all citizens across the continent.”
ENDS
African Central Bank Governors Advocate Policies To Tackle Youth Employment, Reduce Borrowing Cost is first published on The Whistler Newspaper