Reso 001 - 02

Reso 001/02
Committee - African Union

Sponsor – Benin, South Africa
Signatories - Eritrea, China, Chad, Kenya, Madagascar, Libya, Algeria,Ghana, Cape Verde
Pre-ambulatory clauses
1. Being aware of the possible risks which may occur due to the continued dependency on
external loans and the threat which it possess to hinder the long-term growth potential of
the nations due to factors such as economic vulnerabilities, the rise of national debt
burdens, and the substantial impact it causes on the policy sovereignty of African
nations,
2. Identifying the important responsibility of international leading agencies in promoting

development and peace in african nations while charting their own economic path of
independence and sustainability
3. Emphasizing the importance of creating policy prescriptions and development plans

reflecting the country’s unique needs and constraints
Operative Clauses
1. Promotes alternative financing models and local investments through various funding
mechanisms such as,
i. Public-Private Partnerships (PPPs)- Encourages partnerships between African

governments and the private sector both locally as well as internationally to attract private
investments, funding infrastructure, energy, and technology initiatives,
ii. Blended Finance Models- Recommends a mix of concessional and non-concessional

financing, combining ILA funds with private capital to reduce the immense debt burden and to
ensure investment in sustainable and long-term high-impact projects,
iii. Local Development Bonds: Proposes issuing bonds within African financial markets to
attract regional investment, from African investors themselves to empower them and to
contribute to their nation’s growth minimizing the dependency on external lending;
Iv. Encouraging investment through local stock exchanges or bonds can mobilize domestic
resources for development
2. Emphasizing the need for flexibility and respect for national sovereignty in addressing
the challenges posed by the conditionalities of traditional international lending agencies
like the IMF and World Bank—where African countries hold less than 10% of the vote
share, limiting their influence in decision-making—and by establishing robust monitoring
and evaluation frameworks to enhance accountability and transparency in fund
utilization, African economies can achieve better development outcomes;
I. Develop customized lending agreements that take into account the unique
economic, social, and political contexts of each African nation, rather than applying a
one-size-fits- all approach
II. ILA must Involve local governments, communities, and stakeholders in the
planning and implementation of projects to ensure that the projects align with national
priorities and development goals
III. Foster transparency in lending practices to build trust and ensure that the terms
of loans and the objectives of projects are clear and agreed upon by all parties
IV. Offer more adaptable repayment schedules based on the economic realities of
the borrowing nation, allowing for adjustments in response to economic fluctuations
V. Partner with regional organizations like the African Union or the African
Development Bank to design lending practices that reflect the priorities of African nations
VI. Focus lending on specific sectors, such as agriculture, infrastructure, or
education, that are critical to the country's development goals, rather than imposing
broad economic reform;
3. Promotes cooperative arrangements through:
I. Supporting the resolution of political conflicts by assisting governments in

peacebuilding efforts, in collaboration with local non-governmental organizations
(NGOs). This approach emphasizes fostering dialogue, reconciliation, and inclusive
governance, ensuring that all parties involved work together toward lasting peace and
political stability. By strengthening these partnerships, we aim to create an environment
conducive to sustainable development.
II. Enhancing the economic stability of African nations through strategic assistance
from International Lending Agencies (ILAs). This includes providing favorable loan terms
and financial aid focused on boosting economic growth, supporting infrastructure
development, and empowering local businesses. ILAs are encouraged to collaborate
with African governments to ensure that loans are invested in projects with long-term
benefits, such as renewable energy, modern transportation, and advanced education
systems. This cooperative effort will help build resilient economies capable of
withstanding global economic shifts while ensuring equitable growth for all citizen
4. Promotes debt restructuring to suite long term economic development goals through,
requests ILAs to other debt restructuring options and flexible repayment
plans to ensure that African nations can maintain their fiscal stability without
sacrificing their development needs, during periods of economic crisis, natural
disasters, or unexpected fiscal downturns;
Supports various innovative initiatives such as debt-for-sustainable development

swaps, debt-for-nature swaps, debt-for-climate or even debt-for-education swaps,
which will enable African nations to meet respective ILA obligations while advancing
towards their own social or environmental goals,
5. Encourages the establishment of partnerships between African nations and international

stakeholders to promote sustainable economic development through initiatives such as,
a. Investment in renewable energy projects, such as solar, wind, and hydroelectric power, to
diversify energy sources and reduce environmental impact;
b. Development of critical infrastructure, including transportation networks and digital

infrastructure, to support trade, connectivity, and economic growth;
c. Support for sustainable agriculture, providing modern technologies and practices that
increase productivity while preserving natural resources;
d. Capacity-building programs to enhance the skills of the local workforce, focusing on

industries that can drive long-term economic sustainability;
e. Promoting financial transparency and accountability, ensuring that funds are used effectively
and that local governments are strengthened rather than undermined.

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Reso 001/02

Committee - African Union

2. Identifying the important responsibility of international leading agencies in promoting

3. Emphasizing the importance of creating policy prescriptions and development plans

i. Public-Private Partnerships (PPPs)- Encourages partnerships between African

ii. Blended Finance Models- Recommends a mix of concessional and non-concessional

3. Promotes cooperative arrangements through:

I. Supporting the resolution of political conflicts by assisting governments in

Supports various innovative initiatives such as debt-for-sustainable development

5. Encourages the establishment of partnerships between African nations and international

b. Development of critical infrastructure, including transportation networks and digital

d. Capacity-building programs to enhance the skills of the local workforce, focusing on

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