Africa’s macro-economic vulnerabilities, ranging from fiscal fragility and commodity dependence to the increasing frequency of climate shocks, highlight the urgent need for a predictable, African-led financial safety net. In response, the African Union (AU), with technical support from the African Development Bank (AfDB), has endorsed the development of the African Financial Stability Mechanism (AFSM) and is advancing the complementary design of the proposed African Stability and Growth Pact (ASGP).