Strengthening the National and International Architectures for Financing for Development
This flagship report addresses the critical financing gap for achieving the SDGs and Agenda 2063 in Africa, now estimated at $1.6 trillion. It advocates for a holistic strategy centered on building strong national institutions and country systems as the foundation for effective financing. The report emphasizes that predictable domestic resource mobilization (DRM) is essential, not only for revenue but for restoring fiscal sovereignty and reducing reliance on unpredictable external flows, which is a prerequisite for both sustainable development and durable peace.
The analysis is structured around a multi-level value chain: at the national level, it focuses on strengthening economic governance, digitalizing tax systems, and implementing Integrated National Financing Frameworks (INFFs). Regionally, it highlights the importance of the African Continental Free Trade Area (AfCFTA), pan-African banks, and mobilizing intra-African investment, such as from pension funds. Internationally, the report calls for a reformed global financial architecture to ensure fairer representation for Africa, reduce the high cost of capital, expand access to long-term concessional finance, and address the continent's debilitating debt burden.
Factsheet on Strengthening the National and International Architectures for Financing for Development
This factsheet concisely outlines the financing challenges facing Africa and presents a three-pillar solution to close the significant SDG financing gap. It identifies the problem as being exacerbated by global crises, rising debt, and a marginalizing international financial architecture. The solution requires African countries to adopt a holistic strategy built on robust economic governance, digital transformation, and strategic financing frameworks.
The factsheet highlights that strengthening institutional systems is key to unlocking revenue potential, estimating that effective measures could increase domestic revenues by an equivalent of 13.6% of GDP. It points to specific actions, such as modernizing and digitalizing tax administrations—which have already dramatically reduced collection costs—and rationalizing costly and redundant tax incentives. By harnessing its own resources and controlling financial flows through these improved systems, the factsheet concludes that Africa can fundamentally finance its own future.
Promotion of Durable Peace and Sustainable Development in Africa
This report concludes a four-year series on the root causes of conflict in Africa, identifying the persistent "absence of the State"—not just physically, but in its functional capacity to deliver services, uphold justice, and maintain legitimacy—as a central driver of instability. This governance vacuum weakens the social contract, fuels public resentment, and creates fertile ground for non-state armed groups to exploit grievances and even provide alternative governance, as seen with groups like Al-Shabaab. The report also links this state fragility to the recent rise in unconstitutional changes of government, where coups are often fueled by deep public disillusionment with governance failures.
The report argues that achieving durable peace is inextricably linked to sustainable development, which in turn requires sustainable financing. This financing depends on a state's ability to control its own economic and financial flows, which is only possible with strong, accountable institutions. Therefore, the path forward involves rebuilding the state through Africa-led development ownership, focusing on strategic interventions like strengthening fiscal capacity, harnessing traditional institutions, promoting transparency, and reorienting external development support to prioritize long-term state capacity over short-term projects.
