What Happened at the 2025 African Union Summit?

The African Union (AU) Summit has long been a place for big promises, sweeping declarations, and grand ambitions. But for investors and businesses engaging with the continent, the real question is always the same: what actually changes?

The 38th AU Summit in Addis Ababa took place earlier this month against a backdrop of urgent crises and growing expectations. Conflicts in the Democratic Republic of the Congo (DRC) and Sudan are spiralling. Africa’s financial independence remains elusive. Trade integration is frustratingly slow. And yet, despite these obstacles, the Summit offered glimpses of a continent pushing back against structural dependencies, outdated financial systems, and a global order where Africa is too often a spectator rather than a participant.

In this Invest Africa Insights, we explore some of the biggest takeaways from the 2025 AU Summit.

New Leadership: Can Youssouf Make the AU Matter?

The battle for the African Union Commission (AUC) Chairperson was a high-stakes affair, with weeks of speculation over whether Kenya’s Raila Odinga, Madagascar’s Richard Randriamandrato, or Djibouti’s Mahmoud Ali Youssouf would take the helm. While some predicted a tight finish, Youssouf—a quiet but highly experienced diplomat who served as Djibouti’s Foreign Minister for two decades won decisively.

Youssouf is stepping into a role that has been plagued by institutional inertia and dwindling credibility. His first order of business? Restoring the AU’s conflict resolution credentials, particularly in Sudan and the DRC, where AU-led peace efforts have been dismissed as toothless. He must also seize the momentum of Africa’s G20 membership, ensuring the continent has a meaningful say in global financial reforms rather than simply occupying a seat at the table.

Frustration with Western-led financial institutions like the IMF and World Bank has reached a boiling point, and Africa’s leaders are making a concerted push for financial independence. The launch of the African Credit Rating Agency (AfCRA) and the acceleration of the AfCFTA will be critical tests of his leadership. The AU Chairperson serves a four-year term, renewable once, but Youssouf’s first 12 months will be defining. His tenure will ultimately be defined by his ability to deliver meaningful action on Africa’s economic autonomy and peacekeeping credibility.

Reparations: Africa’s Economic Reset?

For decades, reparations for slavery and colonialism have been framed as a moral debate. But at this year’s AU Summit, African leaders made it clear that this is about Africa’s economic future, not only its past.

Under the AU’s 2025 theme, “Justice for Africans and People of African Descent Through Reparations,” the continent is pushing for a radical rethink of its economic relationship with the West. Reparations, they argue, are not just about atonement; they are about redressing centuries of capital extraction that still shape Africa’s financial position today.

The numbers are staggering. Africa lost an estimated $100 trillion through the transatlantic slave trade alone. The continent’s debt crisis can be traced back to the financial constraints imposed during the colonial era. Climate change, too, is an enduring consequence—Africa contributes only 3% of global emissions but suffers disproportionately from environmental disasters linked to the industrialisation of Western economies.

The AU is moving beyond symbolic rhetoric, working to institutionalise reparations. African leaders are developing a “unified vision” for how reparations should take shape—one that goes beyond cash handouts. Their demands could include: Debt cancellation or restructuring; technology transfers and infrastructure investments (modelled on the Caribbean Community’s (CARICOM) reparations blueprint); land restitution; the return of stolen cultural artefacts, and more. Of course, resistance from outside Africa remains fierce, but this will remain a priority issue for the AU in 2025 and beyond.

The DRC Crisis

Beyond economic ambitions, war cast a long shadow over the AU Summit. The Democratic Republic of the Congo (DRC) is in crisis, its eastern provinces overrun by Rwanda-backed M23 rebels, who now control Goma, Bukavu, and other key strategic territories. With over 5.5 million people displaced, the humanitarian toll is staggering, yet the political fallout is also damaging.

Even before the summit formally began, Ethiopian security forces blocked part of the Congolese delegation from attending—an act widely viewed as a calculated diplomatic slight. By the time the crisis was formally addressed, the AU’s response felt too little, too late.

AU Peace and Security Commissioner Bankole Adeoye issued a warning against the “balkanisation of eastern DRC,” yet the organisation stopped short of decisive action. While the AU called for M23’s immediate withdrawal, it offered no concrete enforcement mechanisms. DRC Prime Minister Judith Suminwa Tuluka demanded sanctions against Rwanda, yet AU leaders sidestepped direct confrontation with Kigali. South Africa, whose troops have suffered casualties in the conflict, issued a strong condemnation, but this too failed to translate into meaningful consequences for Rwanda. Paul Kagame dismissed the accusations outright, remarking, "Rwanda has nothing to do with the DRC’s problems.”

The Sudan Crisis 

Since April 2023, fighting between the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF) has turned Sudan into a devastating humanitarian crisis. Twelve million people have been displaced, 25 million require urgent aid, and famine is now a real and imminent threat. Entire cities have been obliterated, healthcare systems have collapsed, and humanitarian corridors remain blocked.

Shortly after the conflict began, the AU drew up a roadmap to achieve peace, but it was quickly rendered obsolete, and its mediation initiatives have foundered thus far. Mediation efforts by Saudi Arabia, the United States, and more recently, Turkey have failed to produce lasting results. The UAE last week called for a ceasefire to allow humanitarian aid to flow during the upcoming holy month of Ramadan, but even this was swiftly rejected by the Sudanese army.

The summit saw various leaders, including Kenya’s President William Ruto, engage with Sudanese diplomats to push for a ceasefire. The AU also reaffirmed its commitment to renewed mediation, emphasising that sustainable peace could only be achieved through negotiations and a transition to civilian-led governance. However, with both Sudan’s military factions unwilling to compromise and foreign interests prolonging the conflict, it is likely to worsen.

The African Credit Rating Agency: Redefining Risk?

For years, African nations have railed against the global credit rating system, arguing that agencies like Moody’s, Fitch, and S&P routinely undervalue African economies, inflate borrowing costs, and deter investment. The result? A $75 billion annual loss due to unfair credit ratings, locking African nations into cycles of debt and financial dependence.

The African Credit Rating Agency (AfCRA), set to launch in June 2025, is Africa’s response. It is designed to replace foreign agencies as the primary credit assessor for African economies, ensuring that risk is measured in a way that reflects local realities rather than external biases. A one-level credit rating upgrade could unlock $15.5 billion in funding—covering 80% of Africa’s infrastructure needs and exceeding the continent’s official development assistance by 12%.

For investors, AfCRA is a potential game-changer. If successful, it could reprice African debt, making sovereign bonds more attractive, reducing borrowing costs, and triggering a wave of capital inflows. But AfCRA’s success is not guaranteed. The real test will be whether African governments stand by their own agency or continue to seek external validation from the very institutions they criticise.