New York, July 22, 2024 (ECA) – Claver Gatete, Executive Secretary of the UN Economic Commission for Africa (ECA), has urged for urgent reforms to the global financial system during a joint press briefing at the 2024 High Level Political Forum (HLPF). Highlighting Africa’s mounting debt crisis, Gatete emphasized the need to overhaul the current debt relief frameworks to better support the continent’s sustainable development goals (SDGs).
Gatete underscored the staggering increase in Africa’s debt, which rose by 192% from 2010 to 2023, reaching an external debt stock of $1.1 trillion. He pointed out that African countries are currently burdened with paying $163 billion annually in debt servicing, severely limiting their capacity to invest in crucial SDGs and the African Union’s long-term development agenda.
“The reform of the global financing system is urgent,” Gatete emphasized, “as it can mitigate access to critical resources needed for the implementation of the SDGs.” He called for reforms that facilitate easier access to concessional funds, which are essential for financing sustainable development initiatives across the continent.
In addition to debt relief reforms, Gatete stressed the importance of domestic resource mobilization in Africa. He highlighted the need to curb illicit financial flows and improve taxation systems to enhance financial sustainability and reduce dependency on external financing. Gatete also advocated for the development of robust capital markets in Africa to attract long-term investments from the private sector, emphasizing the role of green, blue, and sustainability-linked bonds in funding climate-related solutions.
Furthermore, Gatete emphasized the broader implications of financial stability on Africa’s peacebuilding efforts and the engagement of youth in sustainable development processes. He called for increased fiscal space and integrated approaches to address multifaceted challenges, fostering resilience and sustainable growth in African economies.
Christina Duarte, Head of the UN Office of the Special Adviser on Africa (OSAA), echoed Gatete’s sentiments, highlighting that only 12% of the 140 SDG targets have been met so far. She emphasized the urgency of sustainable financing and institutional strengthening in Africa to overcome financing challenges and accelerate SDG implementation.
The joint briefing, part of the HLPF Africa Day, aimed to underscore the collaborative efforts between the African Union, OSAA, and ECA in supporting African member states to achieve the SDGs and Agenda 2063. It highlighted the outcomes of the Africa Regional Forum on Sustainable Development and showcased efforts to integrate regional perspectives into global sustainability frameworks.
The HLPF serves as a platform for member states to present Voluntary National Reviews (VNRs) and discuss global trends impacting SDG implementation. This year, South Sudan presented its VNR for the first time, outlining initiatives aimed at overcoming developmental challenges and contributing to global sustainable development efforts.
In conclusion, Gatete’s call for global financial reforms underscores the critical need for inclusive and sustainable financing mechanisms to address Africa’s development challenges effectively. As Africa navigates its path towards sustainable development, the focus remains on enhancing financial resilience, mobilizing domestic resources, and fostering international cooperation to achieve lasting socio-economic progress.
