AfDB Meetings to Spotlight Global Financial Reform for Africa
As U.N. Deputy Secretary-General Amina J. Mohammed stated, "The world is not facing a crisis of resources, but a crisis of sharing."
NAIROBI, Kenya -- The African Development Bank Group's 2024 Annual Meetings will put a spotlight on reforming the global financial architecture to better serve Africa's development needs, according to Bank President Akinwumi A. Adesina, writes Nkeletsang Morapedi.
Scheduled for May 27-31 in the Kenyan capital under the theme "Africa's Transformation, the African Development Bank Group and Reform of the Global Financial Architecture," the meetings come as African leaders increasingly call for an overhaul of the current system they argue disadvantages the continent.
"The global financial architecture needs to be more responsive, inclusive, and accountable to accelerate worldwide development, particularly in Africa," Adesina said, underscoring systemic hindrances like rising debt burdens, lack of concessional financing and climate finance shortfalls.
At last December's Doha Forum, Adesina highlighted Africa's mounting external debt reaching $1.1 trillion in 2022 and projected to hit $1.3 trillion by end-2023. He emphasized a multilateral approach was crucial to tackle the structural debt crisis.
Beyond debt, Adesina pointed to inadequate emergency financing that exacerbates Africa's vulnerability to climate change and natural disasters. The United Nations estimates Africa requires $1.3 trillion annually to meet its 2030 Sustainable Development Goals.
The inequities are stark: Africa received just $33 billion -- 4.5% -- of $650 billion in Special Drawing Rights issued by the IMF, and $89 billion -- 0.5% -- of the $17 trillion global pandemic response.
With climate change disproportionately impacting Africa despite contributing only 3% of global emissions, the AfDB estimates the continent faces a $213 billion annual climate finance gap until 2030.
In Nairobi, African leaders aim to assert priorities and demand fairer treatment in discussions on reforming international financial institutions, taxation and liquidity mechanisms critical to long-term systemic changes.
As U.N. Deputy Secretary-General Amina J. Mohammed stated, "The world is not facing a crisis of resources, but a crisis of sharing."