Key points:
- The AU Summit calls for economic integration and reparations
- The Africa Credit Rating Agency aims to reshape global finance
- Leaders push for visa-free travel and a united economic front
AFRICA is moving toward greater unity and self-determination as the 38th African Union (AU) Summit concluded in Addis Ababa, Ethiopia on Sunday. Under the theme Justice for Africans and People of African Descent Through Reparations, the summit tackled deep-rooted economic disparities, colonial legacies, and Africa’s role in global markets.
Beyond calls for financial compensation, African leaders focused on economic integration, infrastructure development, and new financial institutions to reduce external dependency.
Africa’s economic inequality on the global stage
Despite being home to 30 percent of the world’s mineral reserves and 65 percent of the planet’s arable land, Africa accounts for less than 3 percent of global trade and only 1 percent of global manufacturing output, according to Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa.
Speaking at the AU Executive Council meeting, Gatete criticised Africa’s unequal position in global finance. ‘It is unjust that over 50 African nations have the same IMF shareholding as a single country, Germany,’ he said.
Gatete also pointed out that Africa received only 2 percent of global clean energy investment between 2015 and 2022, yet climate change is costing the continent up to 5 percent of its GDP annually. He attributed these disparities to colonial-era economic structures that still disadvantage African economies.
Breaking barriers to trade and mobility
At the summit, leaders emphasised removing travel and trade restrictions to unlock Africa’s economic potential. Currently, over 50 percent of African nations require visas for fellow Africans, limiting labour migration and cross-border business.
A high-level dialogue urged African governments to adopt visa-free movement policies. The African Continental Free Trade Area (AfCFTA), already the world’s largest trade bloc by population, is seen as a key driver of economic independence. With Africa’s population projected to reach 2.5 billion by 2050, AU officials believe trade liberalisation is crucial for sustained growth.
Outgoing AU Commissioner for Economic Development Albert Muchanga reinforced this point, stating, ‘A common external tariff will attract investment, as businesses will see Africa as a single, unified market.’
Africa’s own credit rating system takes shape
A major milestone at the summit was progress on the Africa Credit Rating Agency (ACRA), a homegrown alternative to the Big Three global rating agencies.
Serah Makka, Executive Director of ONE Campaign Africa, attended the discussions and welcomed the initiative. ‘This is a long-overdue step toward correcting Africa’s cost of capital and attracting development funding,’ she said.
Makka noted that global agencies often undervalue African economies, leading to higher borrowing costs. The ACRA, launched in June 2024, aims to provide more accurate risk assessments based on African economic realities.
A stronger African voice in global affairs
AU leaders stressed that Africa must shape its own narrative in global governance. Newly elected AU Commission Chairperson Mahamoud Ali Youssouf pledged to prioritise Africa’s influence on the international stage.
‘Africa must assert itself as a key player in global policy discussions,’ Youssouf said in his vi
sion statement.
Experts agree that Africa’s unity is its greatest strength. Balew Demissie, a communications e
xpert from the Policy Studies Institute of Ethiopia, emphasised the need for a unified African identity. ‘For true independence, Africa must think as one, act as one, and negotiate as one,’ he said.
As Africa moves toward greater economic and political integration, this year’s AU Summit marks a defining moment in the continent’s journey toward self-reliance and global influence.
