The 37th African Union Summit was held in Addis Ababa, Ethiopia.

Key highlights of the summit:  At the summit, the Africa Club was launched.

Africa club is the Alliance of African Multilateral Financial Institutions (which are African owned and controlled).

Objective: To raise Africa’s influence in the global financial system by aligning its functions with the SDGs and the African Union’s Agenda 2063.

Members: African Export Import Bank, Trade and Development Bank, Africa Finance Corporation, African Reinsurance Corporation, African Trade and Investment Development Insurance, Shelter Afrique Development Bank and ZEP – RE (PTA Reinsurance Co).


  • It is Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future.
  • Its primary objective is for inclusive and sustainable development

Significance of the summit: 

  • Establishing a Central African Monetary Union: A proposal has been made to establish three AU financial institutions: the African Central Bank, the African Monetary Fund, the African Investment Bank, and a future Pan-African Stock Exchange. 
  • Reforms to multilateral development banks (MDBs): Introducing climate vulnerability requirements and increasing MDB capitalization, particularly for those countries that are facing climate-related risk. 
  • Increasing grant middle-income countries: Affordable grants from the IMF and World Bank to African development banks must be increased to fulfil climate and development goal.
  • Redirecting IMF Special Drawing Rights (SDRs) to African financial institutions: It is important to redirect IMF SDRs to MDBs, in order to finance climate action and integrate middle-income nations into the G20 Common Framework for restructuring their debts.

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