ABUJA, Nigeria (BG) — The United Nations Economic Commission for Africa (ECA) has launched a report titled “The IMF and the Future of the Global Financial Architecture,” advocating for reforms to the International Monetary Fund (IMF) to better support low- and middle-income countries, particularly in Africa.
The report was unveiled during the Ministerial Segment of the 5th Extraordinary Session of the African Union Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration, held in Abuja, Nigeria.
Hanan Morsy, Deputy Executive Secretary and Chief Economist at the ECA, said the report was prepared in close consultation with African Ministers of Finance, Planning, and Economic Development, as well as the African Union and the African Development Bank.
“Today’s economic landscape demands a reimagined IMF that genuinely serves all its member countries,” Morsy said. “This report advocates for changes to empower vulnerable nations, fostering a more inclusive global financial system.”
Key Recommendations
Rule-Based SDR Allocations: Make Special Drawing Rights (SDR) allocations more rule-based and analytical to ensure funds are directed to countries in need, reducing discretionary and political influence.
Global Debt Architecture Reform: Overhaul the G20 Common Framework for greater effectiveness and transparency, strengthen international debt laws, and update the IMF-World Bank Debt Sustainability Analysis to align with SDGs and solvency.
Green Development and Resilience: Scale up initiatives like debt swaps for climate and nature, mobilize resources for green finance, and expand the IMF’s Resilience and Sustainability Trust (RST) to enable longer-term lending for climate adaptation and resilience.
Improving Market Access: Support African countries by establishing macroeconomic benchmarks, expanding technical assistance, developing green capital markets, and fostering a regional credit rating agency to improve access to global markets.
Modernizing the IMF: Reform the IMF’s operating model and lending instruments to better address global shocks, recalibrate the quota formula for equitable SDR access, and strengthen advocacy for long-term global financial stability.
“While substantial progress has been made, the report acknowledges that much work remains,” Morsy added. “The collaborative efforts among African nations and stakeholders will be crucial in pursuing an equitable and efficient financial architecture that addresses current challenges and future developments.”
