Over the week, the world has witnessed another episode of the tale of two cities: Rio and Seville. As representatives of governments from across the globe wound up their conference in the Spanish city of Seville, members of the new global economic bloc BRICS+ also carried out their annual meeting in the Brazilian city of Rio de Janeiro.
Participants of the 17th Summit of BRICS+ leaders have dwelt at length on the need for the reformation of the global financial institutions that have proved themselves trivial, if not harmful to the burning needs of developing countries especially Africa.
On the forefront of this voice at Rio was Ethiopia's Prime Minister ABiy Ahmed (PhD) who spoke fervently for the urgent action to reform the giant financial institutions that are more than decades old, stuck in the working procedures and thinking of the past and are not attuned to the needs of today's developing countries.
PM Abiy called for comprehensive reforms in the decision-making structures of international financial institutions and global norms to promote collective security and shared prosperity.
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As a BRICS member, Abiy said that Ethiopia aims to actively contribute to these efforts, particularly by supporting the expanded representation of emerging markets and developing countries in global decision-making forums.
Highlighting the bloc's growing influence, Abiy said, "BRICS has grown from a bold idea into a dynamic force for global transformation. With the addition of new members, our collective voice grows stronger, our shared purpose becomes clearer, and our potential expands."
Brazilian President Luiz Inácio Lula da Silva stated that the BRICS leaders have reinforced their commitment to reforming the International Monetary Fund and the World Trade Organization.
The participants also highlighted the importance of expanding financing for a fair and sovereign transition. In this sense, the New Development Bank is an example of effective governance, Lula posted on X social media.
On the other hand the highly anticipated Fourth International Conference on Financing for Development (FfD4) also took place in Seville from 30 June to 4 July 2025.
According to a Press Release from the UNECA, African countries made a strong case for overhauling the global financial system to reflect current development realities and risks.
The conference ended with the adoption of a 38-page outcome document, the "Seville Commitment," outlining voluntary steps to improve access to finance.
African delegates placed strong emphasis on key priorities such as debt relief, access to concessional finance, climate funding, and private capital mobilization.
"For Africa, this is not a theoretical discussion. It's a matter of survival, transformation, and sovereignty over our development trajectory," said Claver Gatete, UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA).
Persistent gaps despite progress
The continent needs an estimated $1.3 trillion annually to meet the Sustainable Development Goals (SDGs). Yet high borrowing costs, limited concessional financing, and risk-averse investment patterns continue to constrain progress on the SDGs, AfCFTA implementation, and Agenda 2063.
Only two African countries are rated investment grade, despite a pipeline of viable projects across energy, transport, agriculture, and digital infrastructure.
Most face high debt servicing costs, with many middle-income countries caught in a policy bind: no longer eligible for concessional loans but still carrying deep social and structural vulnerabilities.
ECA has called for reforms to reflect these realities, including changes to how countries qualify for concessional finance, the creation of an African credit rating agency, and the use of tools like the Multidimensional Vulnerability Index to better assess risk and access needs.
"GDP alone no longer reflects the complexity of people's lives," Mr Gatete noted. "We must develop and mainstream indicators that capture vulnerability, resilience, and inequality so that eligibility is based on needs, not just numbers."
A shift in approach to private finance
One of the most prominent announcements from Africa's delegation was the launch of the Platform for Action on Private Investment Mobilization, a collaborative initiative involving ECA, Convergence Blended Finance, the OECD-DAC, and other partners.
Designed to attract more private capital through blended finance, the platform aims to align investment flows with national and regional priorities such as trade corridors, industrial zones, and renewable energy infrastructure.
"We are not proposing another list of projects. We are proposing a coordinated, African-led mechanism to shift capital to where it's most needed," Mr Gatete said.
Africa's investment potential is real and growing. With the AfCFTA creating a $3.4 trillion economic bloc spanning 1.5 billion people, and a steady pipeline of bankable projects across sectors, ECA argues that the missing link is not opportunity, but perception.
Mr Gatete emphasized that Africa does not lack investable projects. It lacks capital. He deplored the fact that "outdated risk models and skewed credit ratings continue to push capital away from the continent, despite reforms and opportunities on the ground."
ECA underscored that de-risking tools and improved financial architecture are essential to attract long-term private investment and foreign direct investment (FDI) at scale.
Debt, data, and a new follow-up framework
Several African countries also pushed for updates to sovereign debt frameworks, calling for faster and fairer restructuring mechanisms that include private creditors and middle-income countries.
ECA advocated for debt-for-climate swaps, transition bonds, and better integration of sustainability into debt sustainability analyses.
The Seville outcome document supports some of these ideas, encouraging regular reviews, improved debt transparency, and an expanded use of Special Drawing Rights (SDRs). It also acknowledges the need for a more inclusive financial architecture.
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To monitor implementation, Mr. Gatete proposed the creation of an Integrated FfD Follow-up System, with regional observatories and country-level coordination units. In Africa, this would be co-led by the African Union Commission, ECA, and the African Development Bank.
"Without mechanisms to track what we finance, and how, we risk eroding credibility," Mr. Gatete warned. "Accountability systems must be grounded in data and driven by national priorities."
The Seville Commitment also affirms the role of UN Regional Economic Commissions, including ECA, in leading regional follow-up, coordinating consultations, and reporting on implementation progress.
Looking ahead
While the FfD4 outcome sets a policy direction, implementation will require coordination among international partners and stronger national institutions. The Seville Commitment also affirms the role of UN Regional Economic Commissions, including ECA, in leading regional follow-up, coordinating consultations, and reporting on implementation progress.
ECA's Executive Secretary affirmed the Commission's readiness to continue supporting Member States with technical assistance, data tools, and convening platforms.
"The real test of Seville will not be what we declared in this room, but what we implement beyond it," Mr. Gatete concluded.
