Meeting as part of the IMF Spring Meetings, the G24 countries, the intergovernmental group composed of 24 countries from sub-Saharan Africa but also from the Caribbean, Latin America and Asia, emphasized the growing fragilities of emerging economies, particularly those in sub-Saharan Africa.
The group laments a series of shocks that threaten to wipe out the economic progress made in recent years. Rising energy prices are hitting oil-importing countries hard, exacerbating external imbalances and increasing pressure on public finances.
Increased vulnerabilities and declining funding
The G24 highlights an increase in debt-related vulnerabilities in emerging and developing markets. At the same time, private capital flows to these economies are contracting, limiting their capacity to finance growth and cope with external shocks.
In this context, the IMF's role as a financial safety net is considered "crucial" for supporting the most vulnerable countries. The group also emphasizes the need for the institution to remain focused on its core macroeconomic missions.
Strengthening crisis response and access to financing
Faced with these challenges, the G24 calls for strengthening crisis prevention and management mechanisms. Access to adequate financing is considered vital, particularly for countries most vulnerable to debt.
The group also advocates for better collaboration between international financial institutions, banks, and national non-bank actors to broaden funding sources. Particular attention is paid to improving access to credit for micro, small, and medium-sized enterprises (MSMEs), considered a key driver of growth.
The G24, through its president, Nigerian Olawale Edun, Minister of Finance in charge of economic coordination for Nigeria, also insists on the urgency of accelerating the development of financial infrastructure in emerging countries , an essential condition for strengthening economic resilience.
He also calls for reforms allowing for broader and fairer participation of rating agencies in risk assessment.
Reforming a system deemed inadequate for Africa
Underlying this is a central question: does the global financial system actually work for African economies?
For the G24, despite the efforts undertaken by the IMF and the World Bank to adapt their programs, a significant gap remains. More action is needed, particularly regarding debt restructuring, to better protect vulnerable countries during crises.
Staying on course on climate action despite the crisis
Finally, the group warns against the risk of relegating climate transition financing to a secondary priority in a context of economic tensions. It calls for accelerating global climate action, particularly through financial innovations capable of mobilizing more resources.
For African economies, which are particularly exposed to the effects of climate change, it is essential that these investments are not sacrificed.
The challenge now is to reconcile short-term crisis management with long-term financing for sustainable development.
