Ablakwa Drops Big Announcement on Three Powerful African Financial Institutions

Ghana has reaffirmed its commitment to strengthening Africa’s financial independence by announcing plans to ratify agreements establishing three major African Union financial institutions by 2027.

Foreign Affairs Minister Samuel Okudzeto Ablakwa said the African Central Bank, African Monetary Fund and African Investment Bank would help the continent mobilise resources, finance development programmes and reduce its dependence on external financial support.

He announced the development during the Extraordinary Session of the AU Executive Council on Financing the African Union, held in Accra on Friday.

Delivering the welcome address on behalf of President John Dramani Mahama, the AU Champion for the Establishment of African Union Financial Institutions, Ablakwa emphasised Ghana’s determination to support the creation of the three institutions.

He maintained that Africa’s economic independence would remain difficult to achieve unless countries on the continent established and controlled their own financial institutions.

The minister consequently appealed to AU member states to accelerate the ratification of the legal agreements required to establish the institutions before the next Executive Council meeting.

Ablakwa further revealed that Ghana would organise an Extraordinary Summit on African Financial Institutions in Accra in 2027, during the country’s tenure as AU Chair.

He explained that the proposed summit would allow African leaders to agree on practical strategies for establishing the institutions, providing sufficient capital and ensuring that they become fully operational.

The minister also highlighted challenges surrounding the financing of the African Union. He disclosed that member states were expected to provide approximately 99 per cent of the organisation’s operational budget in 2027.

However, their contributions would account for only four per cent of the programme budget and 12 per cent of the peace and security budget, highlighting the continent’s continued dependence on external financial assistance for important activities.

According to Ablakwa, African governments must strengthen domestic revenue mobilisation and increase their financial contributions towards development and security initiatives.

He pledged that Ghana would intensify efforts to implement the AU’s 0.2 per cent levy on eligible imports and keep the Executive Council informed about the progress made.

The foreign affairs minister also expressed support for a proposed collaboration between the AU Commission and the Alliance of African Multilateral Financial Institutions. The partnership is expected to double the participating institutions’ capital base and financing capacity within three to five years.

The initiative aims to generate an additional US$200 billion in financing, investment, insurance, guarantees and risk-mitigation support over the next ten years, with broader participation across Africa by 2030.

In addition, Ablakwa called for the faster implementation of the Pan-African Payment and Settlement System, improvements in African capital markets and the introduction of an African Financial Architecture Scorecard to measure the continent’s progress towards financial independence.

He concluded by emphasising that partnerships with African financial institutions must complement the existing funding responsibilities of AU member states rather than provide an excuse for governments to avoid their financial obligations.

Source: https://www.citinewsroom.com/2026/11/ghana-to-ratify-three-key-au-financial-institutions-by-2027-ablakwa/

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