Africa and the Global Financial Architecture Reform Agenda

The report finds that while there is some progress in governance—such as the African Union's permanent seat in the G20 and a third chair for Africa on the IMF Executive Board—most substantive financial reforms are lagging. It highlights a critical gap in climate finance, noting that Africa receives only 20% of global adaptation flows despite needing US$277 billion annually. The document argues that the current GFA is 'ill-equipped' to handle Africa's debt crises and high borrowing costs, with the cost of capital in Africa being 5% or higher than in other regions. Key areas of 'no progress' include the overhaul of the G20 Common Framework for debt treatment and the reform of the IMF quota system. The report recommends prioritizing the reduction of borrowing costs, enhancing transparency in 'new and additional' climate finance, and establishing an African Credit Rating Agency to counter subjective international assessments.

• Governance reforms have seen some success, specifically with the African Union securing a permanent seat in the G20 in 2023 and the IMF granting sub-Saharan Africa a third seat on its executive board in 2023.
• The US$100 billion annual climate finance goal was only met in 2022, two years late, and there are concerns that donors 'stretched, redirected and relabelled' existing funds to meet the target.
• Africa faces a massive climate adaptation financing gap, receiving only 20% of global adaptation flows and approximately US$30 billion per year against a requirement of US$277 billion per year.
• African countries suffer from significantly higher borrowing costs due to risk perception and lender biases; the weighted average cost of capital (WACC) for energy projects in Africa was about seven times higher than in Europe and North America in 2021.
• There has been no significant progress in reforming the G20 Common Framework for Debt Treatment, as evidenced by the prolonged and socioeconomically damaging debt restructuring process in Zambia.
• The IMF quota system remains a barrier to influence, as AU member states collectively hold only 5.2% of total IMF quotas, and a proposed request to recognize V20 Finance Ministers as an official group has not been pursued.
• Unilateral trade measures, such as the EU's Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR), are viewed as 'green' protectionism that may negatively impact African exports and farmers.

APA

Nkhonjera, M. (n.d.). Africa and the Global Financial Architecture Reform Agenda. African Future Policies Hub. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/289f4050-9bcc-4374-b775-1e86b0956083/Assessing%20Progress%20on%20Reforming%20the%20GFA-An%20Afr.pdf?ver=1780902966069

Chicago

Nkhonjera, Maria. Africa and the Global Financial Architecture Reform Agenda. African Future Policies Hub, n.d. https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/289f4050-9bcc-4374-b775-1e86b0956083/Assessing%20Progress%20on%20Reforming%20the%20GFA-An%20Afr.pdf?ver=1780902966069.

Wikipedia

{{cite report |last1=Nkhonjera |first1=Maria |title=Africa and the Global Financial Architecture Reform Agenda |publisher=African Future Policies Hub |url=https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/289f4050-9bcc-4374-b775-1e86b0956083/Assessing%20Progress%20on%20Reforming%20the%20GFA-An%20Afr.pdf?ver=1780902966069 |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nkhonjerandafrica, author = {Nkhonjera, Maria}, title = {{Africa and the Global Financial Architecture Reform Agenda}}, institution = {African Future Policies Hub}, url = {https://img1.wsimg.com/blobby/go/b2d05cc3-7b8c-4f0d-a62a-66af7434f28f/downloads/289f4050-9bcc-4374-b775-1e86b0956083/Assessing%20Progress%20on%20Reforming%20the%20GFA-An%20Afr.pdf?ver=1780902966069}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }