This archive report was first published on 30 October 2021.
As the world grapples with the economic fallout of the pandemic, African countries are turning to European Union members to reallocate their unused reserves at the World Bank and the IMF.
According to Monique Nsanzabaganwa, deputy chair of the African Union Commission, this reallocation, along with trade deals and an end to inequity, is crucial for future relationships with Europe.
“Financing of our economic recovery partly through the historic decision on the Special Drawing Rights would cement efforts to engage productively on the economic level,” Nsanzabaganwa said during the AU-EU ministerial meeting in Kigali on October 26.
The EU has promised more support on debt sustainability, including reaching out to countries that hold a large part of Africa’s debt.
“We Europeans are no longer the biggest holder of African debts. We are working hard to swift implementation of the G20 framework debt treatment. We are working to increase the allocation of Special Drawing Rights to benefit Africa,” said EU high representative and vice president Josep Borrell.
As part of its commitment, the EU has made €1 billion ($1.15 billion) available to support the production of vaccines, medicines, and health technologies in specific African countries, including Rwanda, where a €100 million ($115 million) mRNA vaccine manufacturing facility is planned by 2024.
