The African continent, home to 1.5 billion people, is embarking on a decisive journey towards unity, economic self-determination, and collective prosperity. The recently concluded 38th African Union (AU) Summit in Addis Ababa provided a critical platform for African leaders to advance an agenda of reparative justice, economic integration, and financial sovereignty. Under the theme “Justice for Africans and People of African Descent Through Reparations,” the five-day summit addressed systemic inequalities and outlined actionable strategies to reposition Africa as a key player in the global economy.
At the heart of discussions was the call for reparative justice, extending beyond mere financial compensation to a more profound restructuring of economic relationships. The historical legacy of transatlantic slavery and colonial exploitation has left deep scars, manifesting in Africa’s marginalisation in global trade, finance, and governance institutions. As African nations seek to redress these historical injustices, the summit underscored the importance of intra-continental economic integration as a means to achieving sustainable development.
Despite possessing vast natural resources, including 30% of the world’s mineral reserves and 65% of the globe’s arable land, Africa remains disproportionately disadvantaged in global financial structures. The continent accounts for less than 3% of international trade and only 1% of global manufacturing output. Further exacerbating the disparity, Africa received a mere 2% of the $10 trillion in clean energy investments made globally between 2015 and 2022, despite bearing the brunt of climate change, which costs up to 5% of its GDP annually.
Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa, highlighted these inequities, noting that Africa’s shareholding in the International Monetary Fund (IMF) is equivalent to that of a single European country, Germany. This imbalance extends to credit ratings, where only Botswana and Mauritius hold investment-grade ratings, while other African nations, despite sound economic fundamentals, continue to be labelled as high-risk.
To counteract these systemic disadvantages, the AU is fast-tracking several initiatives aimed at fostering economic sovereignty. Among these is the African Continental Free Trade Area (AfCFTA), set to become the world’s largest free trade zone, encompassing a population expected to grow to 2.5 billion by 2050. Progress was also made in advancing the African Credit Rating Agency, a homegrown financial institution designed to challenge the dominance of the ‘Big Three’ credit rating agencies, whose assessments often disadvantage African nations in global financial markets.
Speaking at the summit, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Albert Mudenda Muchanga, reaffirmed the AU’s commitment to a fully integrated African market. Ongoing efforts include the push for a customs union and a common external tariff, which would enhance Africa’s attractiveness to global investors. Moreover, discussions on easing intra-African mobility through visa liberalisation gained traction, with over 50% of African countries still imposing visa requirements on fellow Africans—a significant barrier to trade, labour migration, and innovation.
Serah Makka, Executive Director for Africa at the ONE Campaign, described the launch of the African Credit Rating Agency as a pivotal milestone in Africa’s financial autonomy. She noted that the agency would serve as an internal check, offering alternative assessments to counterbalance biased international ratings. By reducing the cost of capital for African nations, the initiative aims to stimulate investment and infrastructure development across the continent.
The summit also served as a defining moment in Africa’s assertion of global influence. Monique Nsanzabaganwa, outgoing Deputy Chairperson of the AU Commission, reinforced the message that the demand for justice is not a plea for aid, but a strategic move towards independence and self-reliance. Muchanga echoed this sentiment, stressing that economic integration is the key to negotiating from a position of strength. He argued that a unified Africa would wield greater bargaining power in international trade agreements and geopolitical discussions.
The election of Djibouti’s Minister of Foreign Affairs and International Cooperation, Mahamoud Ali Youssouf, as the new AU Commission Chairperson for the 2025-2028 term marks a new era of African leadership. His vision prioritises strengthening Africa’s presence on the global stage and championing policies that align with the continent’s economic and developmental aspirations.
As Africa consolidates its economic strategies, Balew Demissie, a communication and policy expert at the Policy Studies Institute of Ethiopia, underscored the importance of ideological unity alongside economic collaboration. True independence, he asserted, begins with a collective mindset—African nations must think and act as one to effectively navigate the challenges of the global economy.
The discussions at the 38th AU Summit reflect a decisive shift in Africa’s trajectory. Rather than relying on external validation or aid, African nations are forging their own path towards economic sovereignty, justice, and integration. By harnessing its collective resources, strengthening intra-continental cooperation, and challenging outdated economic structures, Africa is poised to redefine its place in the world order.
As the summit concluded, one message resonated clearly: Africa is no longer a passive participant in global affairs. Through strategic reforms and unified action, the continent is reclaiming its agency, building a future where economic justice is not just an aspiration but a reality.
