https://en.sputniknews.africa/20230704/african-countries-push-for-changes-as-global-financial-architecture-failing-the-world-1060333855.html
African Countries Push for Change as Global Financial Architecture 'Failing the World'
African Countries Push for Change as Global Financial Architecture 'Failing the World'
Sputnik Africa
African leaders have long been advocating for amendments to the global financial architecture. In particular, South African President Cyril Ramaphosa has... 04.07.2023, Sputnik Africa
2023-07-04T18:05+0200
2023-07-04T18:05+0200
2023-08-03T10:47+0200
sub-saharan africa
international monetary fund (imf)
finance
african development bank (afdb)
bank
banking
cooperation
climate change
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The global financial system has failed to provide the world with necessary funds, neglecting the needs of developing countries and driving them to a standstill, said President of the African Development Bank (AfDB) Akinwumi Adesina.Speaking at the 2023 General Shareholders Meeting of Africa50 and Infra for Africa Forum in Lome, Togo, the head of the bank reiterated the call of African nations for a redesign of the global financial architecture. He underlined that the system should work for the interests of all nations, and in particular provide support for developing nations. Adesina noted that first and foremost, it is necessary to ensure that the international financial institutions are able to meet their obligations and fulfill promises, allowing nations all over the world "to attain the sustainable development goals."In addition to lingering effects of the pandemic, African nations are dealing with climate change, he said, adding that $277 billion a year are needed to address the issue. He also mentioned that the debt problem is as acute on the continent as ever, with nations having "to pay a lot" in repayments and debt service.Moreover, Adesina underlined that "government alone is not enough," as other stakeholders, including the private sector, should step in and invest in economic and infrastructure development of the continent for the benefit of all. The African financial leader called on the IMF to unlock more funds to help developing countries in boosting development, addressing climate change, overcoming debt challenges, and bridging infrastructure financing gaps. He added that a lot more resources than $277 billion annually are needed to support the continent's growth, green initiatives and regional integration. He in particular emphasized the need for a more efficient use of capital by international financial organizations so that they assist developing nations on their path to economic prosperity. He recalled that at the Summit for a New Global Financing Pact, held in Paris on June 22-23, UN Secretary-General Antonio Guterres commended the AfDB proposal for using SDRs, international reserve assets issued by the IMF, to unlock global financing for the needs of the developing world. Speaking at the summit last month, Adesina announced that the African Union and African Development Bank are working on the creation of an African Financial Stability Mechanism that will allow the continent to mitigate the effects of various external shocks and provide assistance that the global financial architecture has failed to secure. Guterres, for his part, echoed Adesina's remarks, underlining that the international financial system can't provide a global safety net for developing nations. He called the present financial architecture dysfunctional, outdated and unfair.
https://en.sputniknews.africa/20230626/africans-dont-want-to-be-treated-like-beggars-ramaphosa-insists-on-imf-reform-1060176371.html
https://en.sputniknews.africa/20230623/dont-want-to-look-for-help-kenyas-ruto-lambasts-global-lending-system-calls-for-equality-1060109561.html
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international monetary fund (imf), finance, african development bank (afdb), bank, banking, cooperation, climate change, politics
international monetary fund (imf), finance, african development bank (afdb), bank, banking, cooperation, climate change, politics
African Countries Push for Change as Global Financial Architecture 'Failing the World'
18:05 04.07.2023 (Updated: 10:47 03.08.2023) African leaders have long been advocating for amendments to the global financial architecture. In particular, South African President Cyril Ramaphosa has recently highlighted that the countries of the Global South no longer want to be treated as beggars by international financial institutions, including the IMF and World Bank.
The global financial system has failed to provide the world with necessary funds, neglecting the needs of developing countries and driving them to a standstill, said President of the African Development Bank (AfDB) Akinwumi Adesina.
Speaking at the 2023 General Shareholders Meeting of Africa50 and Infra for Africa Forum in Lome, Togo, the head of the bank reiterated the call of African nations for a
redesign of the global financial architecture. He underlined that the system should work for the interests of all nations, and in particular provide support for developing nations.
“It is failing the world,” Adesina said, elaborating: "It is not able to mobilize the capital that the world needs to meet all of its development needs."
Adesina noted that first and foremost, it is necessary to ensure that the international financial institutions are able to meet their obligations and fulfill promises, allowing nations all over the world "to attain the sustainable development goals."
"It is also failing developing countries because you can see that even after COVID, Africa still needs about $250 billion to recover," he added.
In addition to lingering effects of the pandemic, African nations are dealing with
climate change, he said, adding that $277 billion a year are needed to address the issue. He also mentioned that the debt problem is as acute on the continent as ever, with nations having "to pay a lot" in repayments and debt service.
Moreover, Adesina underlined that "government alone is not enough," as other stakeholders, including the private sector, should step in and invest in economic and infrastructure development of the continent for the benefit of all.
The African financial leader called on
the IMF to unlock more funds to help developing countries in boosting development, addressing climate change, overcoming debt challenges, and bridging infrastructure financing gaps. He added that a lot more resources than $277 billion annually are needed to support the continent's growth, green initiatives and regional integration.
He in particular emphasized the need for a more efficient use of capital by international financial organizations so that they assist developing nations on their path to economic prosperity.
"That’s why last week in Paris, I spoke about the need for re-channelling of the Special Drawing Rights (SDRs) to the African Development Bank," he said, adding: "This would mean a lot more financing to also support all the regional development banks in Africa."
He recalled that at the Summit for a New Global Financing Pact, held in Paris on June 22-23, UN Secretary-General Antonio Guterres commended the AfDB proposal for using SDRs, international reserve assets issued by the IMF, to unlock global financing for the needs of the developing world.
Speaking at the summit last month, Adesina
announced that the African Union and African Development Bank are working on the creation of an African Financial Stability Mechanism that will allow the continent to mitigate the effects of various external shocks and provide assistance that the global financial architecture has failed to secure.
Guterres, for his part, echoed Adesina's remarks, underlining that the international financial system can't provide a global safety net for developing nations. He called the present financial architecture dysfunctional, outdated and unfair.
