Created in 1963, the African Caucus is a joint platform of all African Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG), collectively referred to as the Bretton Woods institutions (BWIs). The presidency of the African Caucus rotates annually. The Caucus meets twice a year: first in the country that holds the presidency, and then where the Annual Meetings of the IMF and WBG are held. At the first meeting, the Governors define strategic policies and options for solutions to challenges of common interest to Africa. The product of their deliberations is set out in a Memorandum that they submit to the Heads of the IMF and the WBG at the second Caucus meeting. The objective is to influence the decisions, programs, and support of the IMF and the WBG in the context of their partnerships with our countries for the development and transformation of Africa to the benefit of its peoples.
Captioned below are selected impact-focused breakthroughs the Bretton Woods Institutions have made in Africa as a result of remarkable advocacy efforts by the African Caucus, among other forums, since the Caucus was created in 1963, and more specifically from 2020 to date. The landmark achievements are in several areas of shared policy interest for the continent, including funding, debt, climate, energy, and Africa’s voice and representation at the IMF and World Bank Group. In the realm of financing, the Africain Caucus’ advocacy has resulted in increased financial support and more favorable terms for African nations. Substantial progress has been also achieved in addressing the debt burden to ensure more sustainable debt levels across the continent. On the climate front, the African Caucus has amplified Africa's voice in global climate discussions, securing commitments for greater support in tackling climate change. Similarly, in the energy sector, the Africain Caucus’ advocacy has led to advancements in access to clean and affordable energy, benefiting millions of people. Lastly, the Africain Caucus’ focus on voice and representation has strengthened Africa's position within the IMF and WBG, ensuring that the continent’s perspectives and needs are better heard and addressed. Below are few illustrative milestones (2020-2025):
A. FINANCING
1. Operationalization of the Resilience and Sustainability Trust (RST) of the IMF to help vulnerable countries meet long-term policy challenges brought about by deep-seated structural impediments to sustained growth. Established in April 2022 as the IMF’s first ever instrument to provide long-term affordable financing, the RST became operational in October 2022. The arrangement is specifically designed to support countries’ efforts to build resilience to climate change and address weaknesses in pandemic preparedness. The RST-supported programs help countries maintain longer-term economic and financial stability, while catalyzing other public and private financing. The RST serves as a third pillar of the IMF’s lending toolkit for Low- and Middle- Income Countries, in addition to the General Resources Account (GRA) and the Poverty Reduction and Growth Trust (PRGT). Eligible countries comprise about three- quarters of the IMF’s membership. The affordable RST loans are provided with a 20-year maturity and a 10½year grace period. The facility features a tiered interest rate structure with eligible low-income countries benefitting from best and more concessional borrowing terms. As of end-March 2025, 23 member countries 1 have benefitted from the related instrument, the Resilience and Sustainability Facility (RSF), of which 15 African countries. More countries look forward to this support.
2. Approval of Use of Special Drawing Rights (SDRs) - On May 10, 2024, the IMF Executive Board authorized the Use of SDRs by Fund members for the acquisition of hybrid capital instruments issued by prescribed holders (official entities approved by the IMF to hold SDRs). A hybrid capital instrument is a financial instrument with perpetual maturity that has both equity and debt properties. The new SDR use will be subject to a cumulative limit of SDR 15 billion, and the expectation that IMF members channeling SDRs to prescribed holders under such capital contributions have Voluntary Trading Arrangements (VTAs) in place to help ensure sufficient liquidity and an equitable distribution of potential SDR exchanges into currencies in the VTA market. Consistent with this Board decision, the African Development Bank (AfDB) and Inter-American Development Bank (IDB) have developed a proposal that enables member countries to channel their SDR holdings as capital contributions to help expand the two institutions’ lending capacity.
3. Historic IDA20 Replenishment - Thanks also to the African Caucus' advocacy, the global community committed $93 billion in a historic early replenishment of the International Development Association (IDA) - the largest ever mobilized in IDA's 61-year history - to address the dire consequences of the COVID-19 pandemic. Approximately 70% of the funding is allocated to Africa. The IDA20 cycle runs from July 2022 to June 2025, but this period was advanced by one year due to the pressures of the COVID-19 crisis.
4. Largest IDA21 Replenishment -- The Common Position of the African Caucus largely contributed to the currently largest 21st Replenishment of IDA, which raised $23.7 billion fourfold up to $100 billion in affordable financing for low-income countries, using IDA's hybrid financial model. The replenishment aims to support countries highly exposed to climate change, fragility, conflict, and violence, with a strong focus on Africa, small states, and other conflict-affected areas. The initiative also emphasizes job creation and economic growth through investments in essential services and infrastructures.
5. Other Innovative New Tools in use by the WBG to take more risk and boost its lending capacity in support of client countries include:
- The Introduction of a new hybrid capital instrument.
- The launch of a Portfolio Guarantee Platform.
- The development of a 50-year IBRD loans for cross-border benefits.
- The launch of the Livable Planet Fund.
- A package of financial measures aimed to make IBRD loans more affordable for middle-income countries.
B. DEBT
1. Improved Debt Sustainability and Debt Restructuring Processes and Timelines - to help address identified debt vulnerabilities. Significant progress in the debt treatment agenda is being achieved since the lengthy processes of debt restructuring for notably Chad (which ultimately reached an agreement), Ghana and Zambia under the G-20 Common framework. To address coordination challenges in the debt restructuring process, the IMF, World Bank, and G- 20 presidency established the Global Sovereign Debt Roundtable (GSDR) in February 2023. Since then, the GSDR has played a significant role in bringing together official and private creditors, and debtor countries, fostering a common understanding and advancing debt negotiations. In this new and more favorable context, there have been debt restructuring agreements in January 2024 between Ghana and their official bilateral creditors and in March 2024 between Zambia and the representatives of their Eurobond holders. More recently, in
March 2025, agreement has been reached between Ethiopia and their official bilateral creditors. The GSDR framework has brought about welcome improvements on work addressing comparability of treatment (CoT) concerns and on timelines toward swifter and more predictable restructuring processes with due consideration to country-specific circumstances.
2. Climate-Resilient Debt Clauses (CRDCs) is another tool that allows countries to defer debt payments for up to two years when natural disasters strike, including principal and interest payments on existing loans.
3. Debt-for-Development Swap - 1st beneficiary: Cote d'Ivoire with a debt-for-education swap in a landmark first transaction for the World Bank. The Cote d'Ivoire government bought back 400 million euros ($423 million) of its most expensive commercial debt due in the next five years with the help of a commercial loan raised at a lower interest rate, a longer maturity and a grace period thanks to a partial World Bank guarantee. The debt swap will free up around 330 million euros over the next five years and generate savings of at least 60 million euros, which Cote d'Ivoire will invest in education. The transaction marks the first time the World Bank has taken part in a debt-for-development swap - a type of transaction that can help to pay for climate, health, education or green finance projects with the savings generated from replacing more expensive debt with cheaper one.
C. CLIMATE
1. Climate Change Action Plan (CCAP), 2021-2025 - The World Bank Group (WBG) and the International Monetary Fund (IMF) have deepened joint effort to scale up Climate Action, through an enhanced framework to help countries scale up action to confront the threat of climate change. The collaboration provides critical support for countries' climate strategies—through an integrated, country-led approach to policy reforms and climate investments. Also, the WBG is ramping up its climate action with new measures, including devoting 45 percent of annual financing to climate change adaptation and mitigation by 2025; and expanding its crisis toolkit to support people on the front lines of the climate crisis.
D. ENERGY
1. Energy -- Mission 300: The World Bank Group (WBG), in partnership with the African Development Bank (AfDB) are implementing an action plan called Mission 300 to bring clean, stable, and affordable energy to 300 million Africans by 2030—250 million from the WBG and 50 million from the AfDB.
E. VOICE and REPRESENTATION
1. Enhancing African Countries' Voice and Representation at the IMF and the WBG -- In 2010, the WBG added a 3 rd Board chair for sub-Saharan Africa (SSA) and adjusted voting powers on its Board of Governors to insure the smooth implementation of the important reform. Similarly, in November 2024, the IMF established a 25 th Chair on its Executive Board, bringing the total number of SSA chairs on the Board to three. In December 2023, the IMF's Board of Governors completed the 16 th General Review of Quotas and approved a 50 percent increase in IMF members' quotas on an equi-proportional basis. The initiative, once effective through individual consents from member countries, will notably enhance the Fund’s lending capacity and the institution’s ability to continue meeting growing financial and technical assistance from member countries, including from the African continent. Furthermore, looking ahead to the 17th General Review of Quotas, the Board of Governors has called for work to develop, by June
2025, possible approaches as a guide for further realignment of members' quota shares to better reflect their global economic standing, including through a new quota formula. There is broad support for safeguarding the quota shares and voice of low-income and vulnerable countries in any quota realignment process.