African leaders have approved the establishment of a $20 billion continental financial stability fund, in a move designed to stave off potential debt crises on the continent before they take hold.

The facility, known as The African Financial Stability Mechanism, will get its own credit rating to allow it to borrow on international capital markets.

Announcing this in a statement yesterday, the African Development Bank said it will host the mechanism.

African leaders had called for the creation of the fund in February 2022 and mandated the AfDB to carry out preparations to set it up.