Tunis, 8 July 2024 - The African Peer Review Mechanism (APRM) participated in the meetings of the 7th Ordinary Session of the Specialised Technical Committee (STC) of Experts and Ministers of Finance, Monetary Affairs, Economic Planning and Integration.
The meeting was held under the theme “Enhancing macroeconomic and sectoral policy coordination in Africa: challenges, opportunities and policy priorities for inclusive growth and sustainable development.” The overall objective of the meeting was to develop a common understanding by policymakers of the need to reinforce coordination between macroeconomic and sectoral policies with the goal of achieving inclusive growth and sustainable development in Africa. The 7th STC also provided a platform for policymakers to articulate concrete proposals to deepen and strengthen implementation of coordinated macroeconomic and sectoral policy frameworks for Africa’s prosperity and transformation. In furthering this agenda, the meeting sought to frame concrete policy options and actions for enhanced macroeconomic and sectoral policy coordination to generate decent employment opportunities and foster resilience to current and future shocks.
In her opening remarks, H.E. Ms. Sihem Boughdiri Nemsia, Tunisia Minister of Finance welcomed the participants and expressed her country’s commitment to finding lasting solutions to Africa’s challenges. Minister Nemsia pointed out that the lack of coordination in macroeconomic and sectoral policy has had a negative effect on African countries’ efforts towards economic integration. Similarly, Dr. Hanan Morsy, the Deputy Executive Secretary and Chief Economist of the UNECA, indicated that persistent global economic shocks continue to hamper Africa’s growth, highlighting the surge in debt-to-GDP ratios. More than 60% of African countries reportedly allocate a significant portion of their revenue towards debt servicing, marginalising public investment in health, education or other essential services.
These calls were reiterated by H.E. Amb. Albert Muchanga, Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals at the African Union Commission, who emphasised the need for Member States to ensure coordination between their various sectoral and macroeconomic policies and sustain the advancement of macroeconomic convergence. In his remarks, Mr. Abner Thulani Dlamini, Acting Chairperson of the Experts STC Bureau and Director of Fiscal and Monetary Affairs in the Ministry for Finance of Eswatini, called on African states to take full advantage of the AU’s seat in the G20 and advocate for reform of the global financial architecture. Mr Dlamini emphasised the importance of a unified position amongst African countries on international tax reforms and on domestic resource mobilisation and curbing illicit financial flows.
During the Experts meeting, the APRM presented the progress made in the operationalization of the Africa Credit Rating Agency (AfCRA). The Agency is key to addressing the occasional prejudicial credit ratings by the leading three international credit rating agencies, which have constrained Africa’s access to global capital markets through high borrowing costs on international financial markets.
In their final Declaration, Ministers called upon “the AUC, African Peer Review Mechanism (APRM) and AfDB to expedite the operationalization of the African Credit Rating Agency (AfCRA)” and encouraged “the AfDB and Afreximbank to avail financial and technical support for the operationalization of the AfCRA.” This initiative is part of the APRM work on supporting Member States in the area of credit ratings as mandated in 2017 by the 28th Ordinary Session of the African Union (AU) Assembly of Heads of State and Governments through Decision Assembly/AU/Dec.631 (XXVIII).
The theme of the 7th STC was aimed at encouraging coordination within and amongst Member States, to create space for strategic sectors such as agriculture, industry, services and to achieve significant transformation, job creation and sustainable development, while maintaining price stability and preserving debt sustainability. The meeting urged Member States to invest in skills development and in productive infrastructure and called on the African Union Commission (AUC) to support Member States’ efforts to facilitate the free movement of persons as a way of achieving regional integration. Moreover, the STC requested the AUC “to assist Member States with structural reforms aimed at supporting fiscal and monetary policy environments that strengthen macroeconomic stability, fiscal discipline and the effective fight against illicit financial flows.” The STC also encouraged the development of “a comprehensive common African position on the reform of the Global Financial Architecture.”
The APRM delegation was led by Dr. McBride Nkhalamba, Ag. Director of Governance and Specialised Reporting and comprised of Dr. Misheck Mutize, APRM Lead Expert on Credit Ratings and Ms. Tsioane Matlanyane, Country Liaison Officer.
