The Sixth Session of the Conference of African Ministers of Finance was held in Addis Ababa, Ethiopia, from 31 March to 2 April 1997 and was preceded by the Meeting of Experts from 25 to 28 March 1997.  The conference, which was attended by forty Ministers and twenty Central Bank Governors and other high-ranking officials and senior participants and personalities, convened under the theme "Financial Sector Reforms and Debt Management" in Africa.

 As we prepare to enter the twenty-first century, Africa is acutely aware of the fact that it could risk further marginalization if it does not take advantage of the opportunities generated by globalization and liberalization of the world economy.  The need to strengthen Africa’s physical and policy structures to meet the challenges of globalization and liberalization has become an imperative for the continent.  This conference whose focus was on the role of multilateral financial institutions in Africa’s development process, financial sector reforms in Africa and the debt problem was, therefore, both timely and an opportune occasion to deliberate on these important issues that continue to shape Africa’s development path.   Arguably, financial sector reforms and management of the excruciating African debt problem are among the necessary actions that could provide significant impetus to sustainability of growth on the continent and help its integration in the world economy, particularly at a time when ODA flows are declining and competition for external financing and FDI has become much keener.

 Within the context, the conference deliberated on a number of challenging development issues including the role of multilateral financial institutions in Africa’s development; financial sector reforms; challenges of the African debt, with focus on the Heavily Indebted Poor Countries (HIPC) Initiative; and the challenges and opportunities of emerging capital markets in Africa.  Many pertinent recommendations were made.  There was broad consensus as to the specific actions needed to be urgently implemented and which were elaborated in the context of the report on the deliberations of the conference.  These recommendations are particularly useful for shaping development policies as well as guiding the assistance perspectives of our development partners.

 This consensus has become possible partly through the significant changes that we introduced in the format of the conference by making it truly participatory and open.  There were broader consultations on the agenda.  Sensitization missions were sent to meet with the Ministers of Finance and Central Bank Governors in a number of African countries. The conference deliberations were also conducted in panel discussions to ensure maximum interaction between the Ministers, Governors and high ranking officials and senior participants.  This interaction was further enriched with the participation for the first time of the private sector, where a number of Chief Executives of African capital markets, international and regional financial institutions and commercial banks attended.  The rewards of this participatory approach convinces us of engendering similar transformation of the format and substance of our future conferences.

 In this respect, I wish to take this opportunity to express my profound gratitude, and that of the Economic Commission for Africa, to the Honourable Ministers of Finance and Governors of African Central Banks, Chief Executives of international and regional organizations and sub-regional institutions as well as the Chief Executives of African capital markets and commercial banks for their attendance and active participation.  I wish also to pay special tribute to a number of organizations and institutions whose participation has been instrumental in the success of this Conference.  Among these are the African Economic Research Consortium (AERC), the World Bank, the International Monetary Fund (IMF) and the African Development Bank (ADB).

   K.Y. Amoako
Executive Secretary

The Sixth Session of the Conference of African Ministers of Finance held under the theme "Financial Sector Reforms and Debt Management", took place in Addis Ababa, Ethiopia from 31 March to 2 April 1997. The conference was preceded by the Meeting of Experts from Ministries of Finance and Central Banks held from 25 to 28 March 1997. The Ministerial segment of the conference was organized into two plenary and three panel sessions in order to allow as much participation and interaction among delegates as possible.

 The theme of the conference as well as the issues discussed during the various panel sessions centred on topical issues of developmental importance to Africa and included: the role of multilateral financial institutions in Africa’s development process; financial sector reforms in Africa: realities, problems, and lessons from country experiences; challenges of the African debt problem; and the role of capital markets in  Africa in mobilization of resources. The conference was convinced of the urgency of addressing these issues as they are at the centre of the necessary conditions for the continent to attain sustainable development. The Meeting of the Intergovernmental Group of Experts preparatory to the conference, deliberated extensively on the best approaches to these and other issues, including problems of exchange rate management in Africa.

 The need for Africa to adapt to the changing international economic and financial environment is widely recognized and appreciated both by African countries and their development partners. The globalization and liberalization of the world economy pose both challenges and provide opportunities for Africa ushering in a new era of keener competition for physical and financial resources.  Furthermore, technological changes are making production and marketing processes obsolete.  Significant advances have also been made in the international financial system both in terms of the range of financial instruments that have emerged and the institutional framework needed for effective financial intermediation.  In such an environment, it is imperative that Africa makes the necessary adjustments in order to take advantage of the emerging opportunities in the world economy.

 The plenary session discussion on "The Role of Multilateral Financial Institutions in Africa at the Turn of the Century" was therefore intended to situate the contribution of these institutions to Africa’s development as the continent approaches the twenty-first century. Multilateral financial institutions have come to occupy a key position in Africa not only as suppliers of development finance, but also as advisors to African governments on development issues as well as a reference point for donor funding to  the continent. It is essential therefore to take stock and examine future roles of these institutions in Africa’s development process, notably regarding the challenges facing African countries to achieve sustainable development, reduce poverty, and effectively integrate in a globalizing and liberalizing world economy.

 On this issue, the conference noted that although Africa as a region was once more experiencing renewed positive GDP growth, nonetheless sustainable development was proving illusive in many countries.  Moreover, the continent was experiencing shrinking flows of official development assistance and stagnation of private flows at a time when many countries were implementing far-reaching reforms. There was, therefore, need for Africa to intensify its efforts at mobilization of domestic resources to augment external finance. The conference stressed the importance of the role played by multilateral financial institutions in supporting this process.  It also recognized the role of micro-finance as an avenue for supporting production in rural areas and alleviating poverty in Africa.  In this respect, multilateral financial institutions, especially the African Development Bank (ADB), were called upon to cooperate with sub-regional development banks to devise the best strategies for pro