CAPE TOWN, South Africa (AP) — A new global financial system is emerging, with countries shifting focus toward more transparent, accountable, and sustainable development funding. Momentum is growing to ensure financial flows are socially and environmentally responsible.

The International Finance Corporation (IFC), part of the World Bank and a major investor in private sector development, has introduced a new policy on how and when to exit investments, aiming to minimize harm to communities and the environment.

At the 5th Finance in Common Summit in Cape Town, co-hosted by the Development Bank of Southern Africa and the Asian Infrastructure Investment Bank, the focus was on mobilizing private capital. "Africa is not looking for aid, we are looking for partnerships," said Nnenna Nwabufo of the African Development Bank.

The summit highlighted the growing role of local institutions and national development banks in financing. While these institutions have local knowledge and access to domestic capital, they often lack capacity—an area where multilateral banks and private investment must step in.

Leaders discussed ways to better mobilize, measure, and reward private capital. As the CEO of Africa Finance Corporation stated, success requires one thing: "Intentionally capitalize."

Credit rating agencies also faced criticism for consistently underrating African economies and local banks, hindering their access to global capital markets.

On debt, the G20's relief framework was criticized for being slow and unclear. Former Malawi President Joyce Banda summed up the sentiment: "We’re ready to rebuild our economies ourselves—but we need a clean slate. These debts must be forgiven."