Nqobile Bhebhe Zimpapers Business HubCalls are growing for reform of the international financial architecture to ensure it serves all countries equally, rather than just a select few, amid mounting global debt, widening inequality and the escalating threat of climate change.United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Mr Claver Gatete, last week in New York underscored the urgency of change, stressing that Africa is bearing the brunt of a system that disadvantages developing nations.“As we convene, the global economy, though recovering from successive shocks, is weighed down by debt, inequality and the existential threat of climate change.“For Africa, the stakes could not be higher. How can we speak of peace and sustainable development when debt service often exceeds spending on health, education and infrastructure?“How can we speak of fairness when Africa, the region contributing least to climate change, receives less than 3 percent of global climate finance? There must be change,” said Mr Gatete.He said Africa was facing disproportionately high borrowing costs compared to advanced economies, a reality that has long undermined growth prospects.“First, we must reform the international financial architecture so that it serves all countries, not just a few.“It is unacceptable that today only two African countries are considered investment grade.“This reality condemns the continent to borrowing costs at least three times higher than the developed economies.“We must accelerate MDB reform, advance the Common Framework on debt and champion innovative tools such as SDR rechannelling and blended finance.”The ECA chief also urged African countries to take advantage of home-grown solutions to reduce dependence on external funding.“Second, we must unlock Africa’s domestic potential.
With over 1.1 billion mobile money accounts, the continent is already a laboratory of financial innovation.“Supporting tax digitisation, capital market development and combating illicit financial flows will enable countries to mobilise their own resources and build resilience.”Mr Gatete further stressed that Africa’s priorities must be fully integrated into the global agenda.“Third, we must align global ambitions with Africa’s priorities, whether through the AfCFTA, AU Agenda 2063, or the UN Pact for the Future.“That means investing in sustainable infrastructure, green energy and regional value chains that generate jobs and prosperity for Africa’s youth.”The case for financial reform has gained traction as developing nations, particularly in Africa, grapple with debt pressures, climate vulnerability and limited fiscal space.Zimbabwe has long called for financial reforms.Leave a ReplyCancel reply Nqobile Bhebhe Zimpapers Business HubCalls are growing for reform of the international financial architecture to ensure it serves all countries equally, rather than just a select few, amid mounting global debt, widening inequality and the escalating threat of climate change.United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Mr Claver Gatete, last week in New York underscored the urgency of change, stressing that Africa is bearing the brunt of a system that disadvantages developing nations.“As we convene, the global economy, though recovering from successive shocks, is weighed down by debt, inequality and the existential threat of climate change.“For Africa, the stakes could not be higher. With over 1.1 billion mobile money accounts, the continent is already a laboratory of financial innovation.“Supporting tax digitisation, capital market development and combating illicit financial flows will enable countries to mobilise their own resources and build resilience.”Mr Gatete further stressed that Africa’s priorities must be fully integrated into the global agenda.“Third, we must align global ambitions with Africa’s priorities, whether through the AfCFTA, AU Agenda 2063, or the UN Pact for the Future.“That means investing in sustainable infrastructure, green energy and regional value chains that generate jobs and prosperity for Africa’s youth.”The case for financial reform has gained traction as developing nations, particularly in Africa, grapple with debt pressures, climate vulnerability and limited fiscal space.Zimbabwe has long called for financial reforms. Calls are growing for reform of the international financial architecture to ensure it serves all countries equally, rather than just a select few, amid mounting global debt, widening inequality and the escalating threat of climate change.
United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Mr Claver Gatete, last week in New York underscored the urgency of change, stressing that Africa is bearing the brunt of a system that disadvantages developing nations. “As we convene, the global economy, though recovering from successive shocks, is weighed down by debt, inequality and the existential threat of climate change. “For Africa, the stakes could not be higher.
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How can we speak of peace and sustainable development when debt service often exceeds spending on health, education and infrastructure? “How can we speak of fairness when Africa, the region contributing least to climate change, receives less than 3 percent of global climate finance? There must be change,” said Mr Gatete.
He said Africa was facing disproportionately high borrowing costs compared to advanced economies, a reality that has long undermined growth prospects. “First, we must reform the international financial architecture so that it serves all countries, not just a few. “It is unacceptable that today only two African countries are considered investment grade.
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