Pan-African Parliament Advances Legislative Innovation and Youth-Led Education Reforms

In a stride toward bolstering Africa’s economic integration and empowering its burgeoning youth population, the Pan-African Parliament (PAP) deliberated on two landmark initiatives during its Fifth Ordinary Session of the Sixth Parliament. These included the presentation of the Draft Model Law on Factoring by the Committee on Monetary and Financial Affairs, and the Report of the African Youth Forum, held in Nairobi under the African Governance Architecture (AGA) platform, presented by Hon. Sulayman Saho.

A New Financial Framework for African SMEs: The Model Law on Factoring

Presented by the Committee on Monetary and Financial Affairs, the Draft Model Law on Factoring marks a strategic legislative innovation designed to strengthen the financial infrastructure for Small and Medium-Sized Enterprises (SMEs) across Africa. The proposed Model Law, developed with technical support from Afreximbank and the African Capacity Building Foundation (ACBF) aims to create a unified continental legal framework to support factoring services, which offer SMEs access to financing based on receivables.

Factoring is presented as a viable solution to close Africa’s trade financing gap, particularly for SMEs, by facilitating immediate liquidity, managing credit risk, and improving receivables collection. The Committee emphasized that despite the global factoring market exceeding EUR 3 trillion, Africa’s share remains a mere 0.84%.

The draft law draws on best international practices, including the updated 2024 UNIDROIT Model Law on Factoring, while infusing it with African perspectives to ensure contextual relevance. It is composed of seven parts, covering definitions, scope, contractual autonomy, rights and obligations of parties, cross-border factoring, and provisions for implementation.

The Committee urged the Parliament to:

• Approve the draft Model Law on first reading,
• Authorize regional consultations to gather stakeholder inputs, and
• Finalize the law for adoption after incorporating those inputs.

If adopted continent-wide, the Model Law will harmonize legal standards on factoring, thereby boosting access to finance, promoting intra-African trade under the AfCFTA, and accelerating Africa’s journey toward economic transformation as envisioned under Agenda 2063.

Youth at the Forefront: Shaping Africa’s Digital Education Future

Hon. Sulayman Saho presented the Report of the African Youth Forum, convened from 16–18 December 2024 in Nairobi, Kenya, under the leadership of the PAP Youth Caucus. Held under the theme “Good Governance and Democratization of Education for Africa’s Youth in the 21st Century”, the Forum underscored the urgent need to revolutionize Africa’s education systems through digital innovation and inclusive policymaking.

Over three days, young parliamentarians, civil society leaders, tech innovators, educators, and representatives from the AU Commission, ACERWC, and ECOSOCC discussed how to leverage virtual learning, artificial intelligence, and public-private partnerships to expand equitable access to quality education across Africa.

Key themes from the Forum included:

• The transformative role of e-learning in democratizing education,
• Challenges of infrastructure, affordability, and digital literacy,
• Barriers to inclusive education for marginalized groups, including girls, youth with disabilities, and children on the move,
• The need for policy harmonization and governance reforms to support digital transformation in education,
• Youth-led innovations in edtech and advocacy for more responsive curricula.

Participants adopted robust Recommendations and Resolutions, including calls for:

• Operationalizing the AU’s African Education, Science, and Technology Innovation Fund (AESTIF),
• Legislating for ICT integration in national education systems,
• Protecting children’s rights online through AU-level model laws on child safety in digital spaces,
• Fostering youth leadership in educational policymaking, and
• Enhancing funding and partnerships to build digital infrastructure, particularly in rural and underserved areas.

Hon. Saho emphasized that Africa’s youthful population is its greatest asset, and the Forum’s outcomes should shape AU-wide policy dialogues and national reforms on digital education and youth empowerment.

A Unified Vision for Africa’s Development

Both presentations showcased the Pan-African Parliament’s commitment to advancing the African Union’s 2024 theme on education and skills development and the long-term objectives of Agenda 2063. While the Model Law on Factoring lays the legal groundwork for economic inclusivity and SME development, the African Youth Forum’s report signals a generational shift toward digitally empowered, governance-conscious African youth.

As PAP President H.E. Chief Fortune Charumbira reiterated during the session, “Africa’s transformation depends on unlocking the potential of its youth and equipping them with the legal and financial tools to shape their destiny. These two initiatives reflect that strategic commitment.”