ADDIS ABABA, Nov. 18 (Xinhua) -- Executive Secretary of the United Nations Economic Commission for Africa (UNECA) Claver Gatete has called for a restructuring of the global financial architecture in response to the needs of developing nations.
He made the remark at the Regional Consultation for the Fourth International Conference on Financing for Development in Africa, held at the UN Conference Center in Addis Ababa, capital of Ethiopia, from Monday to Tuesday, according to a UNECA statement.
According to Gatete, the African continent has confronted different challenges that pose serious threats to its collective progress and demand a unified response.
He said from the COVID-19 pandemic to geopolitical tensions and economic downturns, African economies are "being stretched to their limits," with the continent now facing a financing gap of up to 1.3 trillion U.S. dollars annually to meet its Sustainable Development Goals (SDGs) by 2030.
"As of 2023, the continent's external debt exceeded 1 trillion U.S. dollars with extremely high annual interest payments, in effect, limiting our ability to fund essential development," Gatete said.
The UNECA chief also warned that the number of impoverished people on the continent is expected to hit 476 million this year, as 149 million previously non-poor people have slipped into poverty, largely due to the escalating impact of climate disasters.
"The time has come to overhaul our financial architecture and reform it into one that fairly represents and responds to the needs of developing nations, and champions financial stability for Africa's development," Gatete said.
He underscored that the African continent needs a financial system that prioritizes the SDGs, the African Union's Agenda 2063, and the global climate action, while leveraging both concessional finance and robust domestic resource mobilization to chart a new path forward.
