Those taking part in the meeting of the Group of African Ministers of Finance and Governors of African Central Banks, affiliated with the IMF and the World Bank, reaffirmed their support for new funding initiatives.
Joseph Tucker of the International Monetary Fund presented the “Luanda Declaration” at the close of the African Caucus, speaking of the ways and means with which the Bretton Woods Institutions (BWIs) can support the challenges of financing for sustainable development, combating tax avoidance, eliminating the illicit flow of funds and strengthening Africa’s voice and representation in relation to the BWIs.
The Group stresses that a wealth of natural resources presents vast opportunities for development. On the other hand, they are aware that the countries that depend on oil for their export and tax revenues face unique challenges and remain highly vulnerable to the impact of various external disturbances.
The document reveals that the illicit flow of funds associated with aggressive tax avoidance, the repatriation of profits and debt repayments are tragically depriving [African] countries of hundreds of millions of dollars every year.
They are aware that the prospect of increasingly volatile financial markets means that it will be difficult to find resources to finance sustainable development goals (SDGs).
The document also states that Africa is concerned about the lack of well-conceived diversification strategies and that monitoring mechanisms are inadequate for Africa’s economic diversification.
The African Caucus proposes that the World Bank should support six regional transformative projects in the sectors of energy and agriculture, as well as a number of innovative solutions to reduce frequent funding gaps.
Indeed, the Group calls for financial contributions from the BWIs to the Africa50 initiative of the African Development Bank (ADB) in order to meet the challenges associated with initiating infrastructure projects.
The current Chairman of the African Group of Finance Ministers and Central Bank Governors affiliated with the International Monetary Fund and the World Bank is the Angolan Minister of Finance; its first Vice-Chair is the Minister of Finance of Benin and the second Vice-Chair is the Minister of Finance of Benin (sic). The position of Secretary of the organisation is held by the Egyptian Minister of Finance.
The member-countries of the African Caucus are Angola, Algeria, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, the Central African Republic, Chad, Comoros, Côte d’Ivoire, the Democratic Republic of the Congo, Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, the Republic of the Congo, Senegal, São Tome and Príncipe, Somalia, South Sudan, Swaziland, Togo, Uganda, Zambia, Zimbabwe, Tunisia, Tanzania, Sudan, South Africa, Sierra Leone, the Seychelles and Rwanda.
At the next meeting of the IMF and the World Bank scheduled for the 13th to the 17th of October 2015 in Lima, Peru, the Chair of the African Caucus will pass to Benin.