The African Development Bank (AfDB) has officially announced the establishment of an African Financial Stability Mechanism (AFSM). The $20 billion fund (around 12,000 billion CFA francs) is intended to prevent possible debt crises

African heads of state have taken a decisive step in managing the continent's financial risks. The AFSM aims to strengthen the resilience of African economies in the face of debt crisis risks. This fund, which will be hosted by the AfDB, aims to offer African countries a safety net, similar to existing systems in Europe and Asia. In particular, it will allow access to international capital markets by benefiting from its own credit rating. The initiative meets a double need, such as: to anticipate the risks of default linked to external commercial debts, and to deal with increasing pressures on public finances, in particular due to climate change and investment needs.

Membership in the fund will be voluntary and open to all African Union countries, with the possibility of integration for non-African members, up to 20%, while maintaining an African majority.

According to the Vice President and Chief Economist of the ADB, Kevin Urama, if the fund is implemented as planned, it could allow African states to save around 20 billion dollars (about 12 trillion FCFA) in debt service costs by 2035.