In order to effectively handle the rising high levels of debt in Africa, Mr. Clarver Gatete, Executive Secretary of the UN Economic Commission for Africa (ECA), has urged nations to investigate changes to the shared debt relief framework.
Speaking at the 2024 High Level Political Forum (HLPF), Gatete emphasized the difficulties in obtaining funding for the goals of the continent, “particularly the concessional funds that are long term and cheaper.”
He said: “The reform of the global financing system is urgent, as it can mitigate access to critical resources needed for the implementation of the SDGs.”
According to data from the African Development Bank, which states that “African countries are paying $163 billion per year with an external debt stock of $1.1 trillion,” the continent’s debt climbed by 192% between 2010 and 2023. We have never witnessed an increase quite like this one.
“This means that by paying the debt, countries have very little room to implement the SDGs and the next 10-year programme of the African Union,” he added.
Gatete emphasized the necessity of mobilizing indigenous resources in Africa in order to combat illegal financial flows and enhance taxation.
In order to supply long-term resources, he also underlined how crucial it is to build capital markets as part of private sector involvement in Africa.
Moreover, restructured green, blue, and sustainability linked bonds present chances, according to Gatete, that may draw in additional investors to support climate-related initiatives.
He stated that ECA is assisting nations in bolstering domestic resource mobilization via capital markets in order to enhance self-financing and financial sustainability in Africa.
In order to achieve long-term progress, he also emphasized the necessity of expanding budgetary space and addressing associated issues like conflict prevention and peacebuilding as well as young involvement in sustainable development processes.
As for the SDGs, only 12 percent of the 140 targets have been met, according to Ms. Christina Duarte, Head of the Office of the Special Adviser on Africa (OSAA), situated at UN Headquarters.
“We need to understand the root causes of the financing challenges we face on the continent and the focus should be on sustainable financing and institutional strengthening in Africa to build resilience,” she said.
Ms. Duarte emphasized the significance of long-term fixes, such as addressing financial and economic flows, in order to alleviate Africa’s debt crisis and accomplish the Sustainable Development Goals.
The purpose of HLPF Africa Day is to draw attention to important concerns that have emerged from significant discussions, including the Africa Regional Forum on Sustainable Development (ARFSD).
At the HLPF, nations offer their Voluntary National Reviews (VNR). They also consider how international trends may affect the process of adoption.
