Experts Urge Stronger Domestic Financing as Africa Confronts “Biased” Global Financial System

ADDIS ABABA, Xinhua: Experts and policymakers at the Africa Think Tank Summit have called for stronger continental efforts to boost domestic development financing mechanisms amid what they described as a “biased” global financial architecture.

The call was made on Wednesday during the opening session of the 11th Africa Think Tank Summit, the continent’s flagship intellectual and policy gathering, in the Ethiopian capital of Addis Ababa.

The three-day summit, held under the theme “From Taxation to Action: Bridging Policy and Implementation in Public Financial Management in Africa,” brings together experts, policymakers, private sector leaders, and development partners to discuss strategies for closing the gap between policy formulation and implementation in public financial management.

Addressing the summit, African Union Commission Deputy Chairperson Selma Malika Haddadi said that Africa faces a “sovereignty paradox, striving to achieve financial self-reliance within a global system that is structurally biased.”

“Africa’s pursuit toward fiscal sovereignty through domestic resource mobilization is fundamentally constrained by a global financial architecture,” Haddadi said, noting that the continent suffers “a massive hemorrhage” of capital through illicit financial flows, while an “overwhelming external debt burden” forces governments to divert scarce domestic revenues to debt servicing.

She emphasized the urgent need for Africa’s development to be financed by African resources, guided by African priorities, and implemented through transparent and trustworthy systems.

Delegates at the summit also stressed the importance of harmonizing tax regimes, combating illicit financial flows, and promoting fair, efficient revenue systems. They called for a unified continental push to reform the inequities in global finance.

Ethiopian Minister of Revenues Aynalem Nigussie said Africa needs to move from policy to action to reduce fiscal dependency and achieve self-reliance, stressing that the right implementation measures must be in place to ensure reforms translate into tangible outcomes for citizens.

Running through Friday, the high-level gathering will discuss key issues in Africa’s domestic financing agenda, including digital taxation, debt sustainability, and the continent’s ongoing efforts to achieve fiscal sovereignty and inclusive growth.