The institutions of the Bretton Woods system (IMF, World Bank) only slow down the development of the continent, while Africa needs a new financial institution that reflects its needs, Kenyan President William Ruto announced on Friday while he was addressing the 39th Annual General Meeting of the Trade and Development Bank Group.
"We have to re-position ourselves, re-represent Africa in a different way – a way from the continent that was always provided with all the negative adjectives," the president stated.
According to him, the current Bretton Woods financing system damages the economic growth of the continent due to the accumulation of external debt, and it is necessary to get rid of outdated financial institutions.
He also called on African countries to look for alternative economic partners.
Earlier, Ruto proposed creating a "green bank" that would not depend on the World Bank and the IMF to overcome the climate crisis.
Last month, the South African leader Cyril Ramaphosa stated that the both institutions – the IMF and World Bank – must be subjected to a "fundamental overhaul" to take into account the interests of the developing nations. He outlined that the institutions have to become "more inclusive and responsive" so that they would succeed in their mission of enhancing global development.
"These bodies should be restructured to be more inclusive and responsive. They should provide funding in a way that does not increase the debt burden of countries that are already struggling to service their debt," the president stated.
In addition, Ramaphosa stated that the IMF and World Bank should offer funding in a way that doesn't put more debt on the shoulders of some nations. Debates have been sparked by the IMF's loan requirements in a number of African countries.