UN Secretary General António Guterres, at the 8th AU-UN Annual Conference, emphasised the need for a reformed global financial system that addresses the developmental needs of Africa.
In a joint briefing on Monday in Addis Ababa, the capital of Ethiopia, Guterres said the current global institutions were built at a time when most of Africa was under colonial rule and many of those institutions need to be reformed to help the continent meet UN Sustainable Development Goals (SDGs).
“The international financial architecture must be corrected to give more voice and power to developing countries in general, of course Africa countries in particular ,” said Guterres, noting that more financial support should be made to help developing countries mobilize resources and meet UN Sustainable Development Goals (SDGs).
He emphasised that the financial system, deeply rooted in colonial legacies, was designed to benefit the former colonial powers while leaving their dominions in Africa with distorted economies.
The UN scribe also noted the growing challenges African nations face, such as the impact of the COVID-19 pandemic, inflation exacerbated by the war in Ukraine, and the overwhelming debt burdens.
He said the current international financial architecture often cannot give African countries with the safety net they need- whether it is a protection from strangling debt or from climate catastrophe they did not cause.
Despite its rich resources, Guterres stressed that Africa remains economically constrained and lacks access to adequate concessional finance, which hampers its ability to invest in sustainable development and climate adaptation.
Stressing the need for reforming the international financial system, Guterres called for “more voice and power for developing countries, particularly African nations” within global financial institutions.
MG/as/APA