As Chair of the African Union in 2025, Angola is spearheading a major financial reform with the creation of the African Financing Stability Mechanism (AFSM)—a bold initiative designed to strengthen the continent’s economic resilience and protect member states from debilitating liquidity crises.
At the heart of the AFSM is a vision to establish a continental safety net, helping countries manage external debt repayments more sustainably. With many African nations grappling with rising debt and limited fiscal space, the mechanism is expected to offer essential breathing room. According to preliminary projections, the AFSM could save African countries up to $20 billion in debt servicing costs over the next ten years.
This initiative is especially significant at a time when external shocks—from global interest rate volatility to climate-related disasters—are compounding existing vulnerabilities across the continent. By pooling resources and fostering intra-African financial solidarity, the AFSM aims to provide a structured and collective response to financial stress, reducing reliance on external lenders and emergency bailouts.
Angola’s leadership in this endeavour has been widely welcomed. The move reflects a growing shift towards African-led solutions to African challenges, grounded in pragmatism and long-term sustainability. The mechanism is also expected to complement the broader reform of the global financial architecture, in which Africa is demanding a more equitable voice.
The AFSM forms part of the African Union’s wider agenda to boost sovereign financial resilience, enhance debt transparency, and empower African institutions. If successfully implemented, the mechanism could serve as a transformative tool in the continent’s quest for economic sovereignty and self-reliant development.
Angola’s stewardship of this agenda underscores its growing influence in shaping the continent’s economic future—driven by collaboration, innovation, and a deep commitment to shared progress.
Source: Further Africa
