The global economic landscape is undergoing significant shifts, with the African Union (AU) at the cusp of a major development. There is a growing international consensus supporting the AU’s admission into the G20, the international forum for governments and central bank governors from 20 major economies. This support is spearheaded by major countries such as the United States, China, Japan, Germany, and France.
In a recent development, the Indian Prime Minister Narendra Modi has proposed the AU’s admission at the upcoming G20 summit in New Delhi. This proposal has been warmly received by many international stakeholders and is seen as an important step towards a more inclusive global economic system.
Senegalese President Macky Sall has been vocal in his support for this move, stating that it is overdue considering Africa’s economic and demographic significance. Sall believes that the AU’s admission into the G20 would play a crucial role in devising a more inclusive global financial system.
However, the AU’s integration into the G20 is not without its challenges. The AU must prepare a comprehensive strategy to optimize the benefits of joining the G20. This includes the selection of suitable representatives and the development of common positions on global economic issues.
Moreover, the AU needs to address significant financing shortfalls. The international financial system currently covers only a small share of Africa’s sustainable-development needs. This is a gap that the AU would need to close in order to fully realize its potential within the G20.
Joining the G20 would provide the AU with the opportunity to align the global development agenda with its own Agenda 2063. This would help to mobilize external financing for a range of critical areas including climate adaptation, energy transition, and infrastructure development.
The Euro-Mediterranean Economists Association (EMEA) has been a strong advocate for the AU’s admission into the G20. The EMEA believes that granting the AU a permanent seat at the G20 would significantly strengthen the legitimacy and effectiveness of the forum.
According to the EMEA, the current absence of an African voice in the G20 diminishes the forum’s effectiveness. The EMEA argues that the inclusion of the AU would lead to a more inclusive and equitable global governance system.
The AU’s admission into the G20 could mark a significant milestone in the evolution of global economic governance. It would not only give Africa a stronger voice in global economic affairs but also contribute to a more inclusive and equitable international financial system.
