The Economic Commission for Africa (ECA) has called for the strengthening of sub-regional multilateral development banks (MDBs) to enhance their capacity to mobilize long-term financial resources and offer affordable services to African nations.
Hanan Morsy, Deputy Executive Secretary and Chief Economist for the ECA, made this appeal in a statement published on the commission’s website on Sunday, March 17. Her remarks followed her speech at the 57th Session of the ECA Conference of African Ministers of Finance, Planning, and Economic Development (COM2025), which began on March 12 and is set to conclude on March 18, 2025.
Morsy highlighted the urgent need to remove structural barriers hindering Africa’s economic growth. She warned that tightening global financial conditions and declining development aid are threatening Africa’s ability to fund critical infrastructure and economic projects.
According to Morsy, well-capitalized and structured sub-regional MDBs could play a vital role in bridging Africa’s financial gaps, attracting private investment, and fostering regional economic development.
Discussions at the high-level conference centered on strengthening MDBs to support industrialization, expand trade and infrastructure investment, and improve resource mobilization, particularly under the African Continental Free Trade Area (AfCFTA).
Admassu Tadesse, President and CEO of the Trade and Development Bank, stressed the importance of increasing investment in trade-enabling infrastructure, which he described as essential for fostering intra-African commerce and driving continental development.
Similarly, Fatima Elsheikh, Secretary-General of the Arab Bank for Economic Development in Africa (BADEA), identified major challenges hindering MDBs’ effectiveness, including high borrowing costs, insufficient capital, and excessive dependence on low-income shareholders.
Calls for Reform in the Global Financial System
Panelists at the forum also pushed for reforms in the global financial system to strengthen African MDBs’ financial foundations. Experts advocated for expanding the number of African nations eligible for concessional loans and ensuring a fairer allocation of Special Drawing Rights (SDRs).
They also underscored the necessity of aligning MDBs’ strategies with Africa’s long-term development goals, particularly the United Nations’ 2030 Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
Established in 1958 by the United Nations Economic and Social Council (ECOSOC), the ECA is one of the UN’s five regional commissions. It was created to foster Africa’s economic growth by promoting economic and social development, enhancing intra-regional integration, and strengthening international cooperation.
9am News Nigeria’s findings reveal that the ECA has 54 member states, comprising all African nations. It serves as a regional arm of the United Nations and plays a crucial role in shaping Africa’s institutional framework for economic development.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
