Continental Financial Institutions

Aim

The Continental Financial Institutions flagship establishes three treaty-based institutions: the African Investment Bank to fund development projects, the African Monetary Fund to provide balance-of-payments support, and the African Central Bank to anchor a future continental monetary union, collectively replacing dependence on external development finance institutions.

Progress to date

All three institutions have founding treaties but none has reached the ratification thresholds needed for establishment. The African Monetary Fund Protocol has the most signatories but is still short of the required number. The July 2024 AU Assembly called for "renewed zeal" from member states to accelerate ratifications and has tasked the AU Commission with a dedicated diplomatic drive.

Challenges

Member states are reluctant to cede monetary sovereignty, contributions to capitalise the institutions are politically contentious, and the African Development Bank already occupies much of the institutional space these bodies would fill.

Next steps

The AU Commission is targeting at least the African Investment Bank for establishment within the Agenda 2063 Second Ten-Year Implementation Plan period, focusing diplomatic pressure on the highest-priority ratifiers in 2025 to 2027.