Full and Fair Financing for Africa’s Future
Why does Africa—home to some of the world’s fastest-growing economies—still pay more to borrow money than the wealthiest nations? Why are 22 African countries forced to spend more on debt payments than on healthcare*?
Because the global financial system wasn’t built for Africa.
As world leaders gather in Seville for the Fourth International Conference on Financing for Development (FfD4), they must confront a hard truth: the current financial architecture is failing those who need it most. Far from leveling the playing field, it is deepening inequality and holding back the continent’s potential.
A system stacked against Africa
Africa is bearing the brunt of a broken system. Rising trade barriers, shrinking aid, and a climate finance mechanism that fails to meet the scale of the crisis are putting development at risk. Foreign debt has surged in the last decade—driven by costly loans that siphon scarce resources away from schools, hospitals, and infrastructure.
These are not just fiscal issues. They’re systemic symptoms of a financial architecture designed without Africa’s voice—or its realities—in mind.
African countries routinely face borrowing costs three to five times higher than those paid by richer nations*. Credit ratings are skewed. GDP per capita is used as a proxy for resilience, even though it hides structural fragility. Representation in global financial institutions remains outdated*. The result: decisions made without African input continue to shape Africa’s future.
Seville must mark a shift
FfD4 is more than a conference. It must be a pivot point—from fragmented, donor-led models to long-term, nationally owned strategies rooted in equity and resilience.
Africa doesn’t need charity. It needs access—access to affordable, predictable financing that aligns with national priorities and recognizes real-world vulnerabilities, from climate shocks to debt stress. The reforms needed include:
- Fairer representation and voting power in global financial institutions.
- Access to concessional finance based on risk and climate vulnerability—not outdated income thresholds.
- Debt restructuring and swaps that prioritize development outcomes.
- Alignment of donor support with national development strategies—not fragmented agendas.
It’s time to reimagine financing not as a lever of dependency, but as a tool for sovereignty.
African solutions, Global support
Despite these challenges, African governments are not standing still. The continent is charting a course toward financial independence—and the world should take note.
The African Union’s creation of the African Credit Rating Agency (ACRA) is one such move, offering a more accurate and context-aware alternative to legacy rating systems that currently ignore or misjudge 22 African countries.
The African Continental Free Trade Area (AfCFTA) is another milestone—boosting intra-African trade, driving down costs, and strengthening regional economic resilience.
At the country level, bold fiscal and financing reforms are already under way:
- Benin has launched a new Development Finance Policy to unlock green capital.
- Rwanda is increasing its tax-to-GDP ratio by broadening the tax base and reducing exemptions.
- Côte d’Ivoire, Mali, Togo, and Egypt are tapping into diaspora bonds to mobilize homegrown investment.
These aren’t just success stories. They’re proof of what’s possible when financing backs national leadership rather than replacing it.
The UN’s Resident Coordinators: Catalysts for change
Across the continent, UN Resident Coordinators (RCs) are helping governments unlock the full potential of development finance by brokering partnerships, coordinating action, and anchoring reforms in national priorities. They are not just coordinators—they’re the strategic force behind the UN’s collective impact on the ground.
In Mauritius and Seychelles, six UN agencies are working under RC leadership to design gender-responsive financing strategies that drive green and blue economy transitions.
In Egypt, the RC helped launch an Integrated National Financing Framework (INFF) to align all public and private finance with national goals—while also supporting the development of green and gender bonds and innovative debt instruments.
In Mauritania, the RC partnered with the UN’s regional economic commission (ESCWA) to design debt swaps for food security—starting with a deal with Spain—and helped deepen collaboration with the World Bank, IMF, AfDB, and other key players.
In Namibia, the UN is supporting the government’s efforts to curb illicit financial flows through a task force backed by the central bank, UNCTAD, and UNECA—an essential step to keep more domestic resources at home.
Even in complex contexts like Burkina Faso, Mali, and Niger, RCs are helping launch nationally led flagship initiatives—from solar-powered health clinics to youth-run agribusinesses and locally sourced school meals.
This is the unique value of the RC system: acting as an impartial, trusted bridge between governments, financiers, and partners—especially where coordination is difficult but critical.
From promises to progress
Africa’s ambition is clear: a future defined by financial sovereignty, regional strength, and homegrown innovation. The question is whether the global financial system can keep up.
Seville must deliver more than declarations. It must offer tools, reforms, and political will to close the gap between ambition and action. That means:
- Rebalancing financial governance and giving African nations a true voice.
- Operationalizing debt-for-development swaps and expanding access to climate-aligned liquidity.
- Scaling catalytic investments that align with national systems, not substitute them.
The Addis Ababa Action Agenda raised expectations but lacked enforcement and coherence. Seville must go further—with a Compromiso, or “Commitment for Action” that brings structural change, not just symbolic language.
Africa is not asking for favors. It is demanding fairness—and offering solutions. With UN support, national leadership, and global partnership, the continent can build a future where finance fuels resilience, not reinforces dependency.
Let Seville be remembered as the moment the world moved from rhetoric to real reform—for a future that is full, fair, and African-led.
This blog was written by UN Development Coordination Office Regional Director for Africa Yacoub El Hillo.
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* UN Office of the Special Advisor on Africa – Unpacking Africa’s Debt - 2024-nepad-report_en.pdf
