(MINISTRY OF FINANCE AND BUDGET) – The Africa Financial Industry Summit (AFIS 2024) was held on December 9 and 10, 2024, in Casablanca, under the theme “ The time of African financial powers has come ».
Founded by Jeune Afrique Media Group in 2021 and co-organized by the International Finance Corporation, AFIS 2024 brought together more than 1,000 African financial sector leaders, policy makers and regulators.
In a context of unprecedented reconfiguration of the African financial industry, AFIS 2024 took on the challenge of bringing together private sector leaders and government representatives from the continent and around the world around a single objective: developing strategies which enable African finance to become an engine of development, economic growth and resilience.
At the special invitation of the organizers, an Ivorian delegation, led by Mr. Adama COULIBALY, Minister of Finance and Budget, took part in the Summit.
The Minister intervened as a panelist at Panel 4 which had the theme: “ Beyond restructuring: how to build an equitable architecture for African debt? »
This involved, among other things, reflecting on the effectiveness of the debt restructuring mechanisms of African countries, on the question of the contribution of the IMF and multilateral banks for access to more advantageous financing and finally on the question of the emergence of a pan-African rating agency aimed at correcting the African risk premium.
Panel 4 which recorded, among others, the participation of Mr. Behi Iman Egeh, Minister of Finance of Somalia, Carlos Lopes, professor at the University of Cape Town, and Charles de Boisrou associate member of Boad, was the opportunity for the Ivorian Minister of Finance and Budget to indicate in particular that in order to improve the various debt restructuring frameworks, the existing procedures should experience a certain speed aimed at shortening the deadlines for negotiations. In addition, partial or total debt suspension during negotiations would help states by reducing budgetary pressures.
Furthermore, with a view to making the restructuring mechanisms fairer, the Minister proposed that the contractual framework for new debts be strengthened by the inclusion of collective action clauses taking into account the participation of private lessors in possible restructurings.
Continuing, he hoped that climate emergency clauses would also be integrated into future financing agreements in order to defer debt repayment in the event of major climate crises or natural disasters.
Regarding Special Drawing Rights, the Minister deplored the fact that during the distribution of recent SDRs, following global shocks, Africa, which has around 1.5 billion inhabitants, received only 5% of the total 630 billion US dollars granted.
Of the three major international rating agencies, the Minister indicated that establishing a presence on the African continent would allow them to become more immersed in local economic realities which would enable them to better integrate subjects which only have effects in the current situation and to make a difference with structural subjects.
Finally, at the request of the moderator, the Minister explained the mechanism of the current operation with the World Bank called “debt for development swap” which consists of raising cheaper debt thanks to the credit enhancement granted by the World Bank. and to repurchase one or more more expensive lines of debt from the existing debt portfolio while allocating the debt service savings to development projects. He welcomed the initiative and indicated that this model, which is a textbook example with Côte d’Ivoire, could be replicated with other States subsequently.
The event was also punctuated by various audiences that the Minister granted to certain major players including VISA, HUAWEI and BOA Group. This was an opportunity for some to review recent economic developments and for others to take stock of projects already in progress and also discuss future issues.
