July 20, 2024

Macky Sall calls for international financial reforms to benefit Africa at aix-en-provence forum

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Macky Sall calls for international financial reforms to benefit Africa at aix-en-provence forum

Macky Sall calls for international financial reforms to benefit Africa at aix-en-provence forum

From July 5 to 7, France hosted the 24th edition of the Aix-en-Provence Economic Forum, featuring prominent figures including former Senegalese President Macky Sall.

In an exclusive interview with La Tribune, Sall, now a special envoy for the Paris Pact for People and Planet (4P), emphasized the need for economic partnerships and reforms in the international financial architecture to foster Africa’s development.

Sall addressed the recent decision by France to reduce public development aid (ODA) by €800 million, highlighting the ineffectiveness of traditional aid approaches for Africa’s development.

“Public development aid has not delivered the expected results and cannot be the solution for Africans’ development needs. Today, we are talking about partnerships and access to capital markets on sustainable terms,” he asserted.

The former Senegalese leader underscored the importance of granting Africa access to international financial markets without being hindered by exaggerated risk perceptions that lead to prohibitive costs for developing countries.

“What Africa needs is access to these markets under conditions not impaired by the risk perception rating system,” he stated. Despite Africa’s vast natural resources, access to capital remains a significant challenge for its economic growth.

The Paris Pact for People and Planet (4P) emerged as a timely initiative to rethink development financing mechanisms.

Launched during the Paris Summit in 2023 under the aegis of President Emmanuel Macron, this pact brings together 32 countries committed to providing a collective response and rethinking multilateralism to make it more inclusive, lateral, and transparent.

According to Sall, the 4P aims to reform international financial institutions inherited from the Bretton Woods consensus, ensuring they better address the concerns of the Global South, including African, Asian, and Latin American countries.

“Institutions arising from the Bretton Woods consensus must consider the presence of new entrants: African, Asian, and Latin American countries, which belong to the Global South.

Their concerns must be considered in financing their development and climate transition,” he explained.

Although there have been advancements, such as Africa’s admission to the G20 and securing a third seat on the International Monetary Fund’s (IMF) board, Sall believes these efforts remain “timid” and insufficient to meet Africa’s vast needs.

“The needs are immense for those who aim to develop a vast continent of 30 million square kilometers and 1.4 billion inhabitants.

Addressing these needs cannot rely on public development aid alone.

Innovative solutions must be invented collectively,” he stated.

Sall also highlighted the 4P’s goal of creating dialogue platforms to develop new and inclusive solutions for Africa’s sustainable development.

Through this initiative, he hopes Africa will no longer be seen merely as a reservoir of natural resources but as a significant economic player in its own right.

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