Africa: Reforming global financial structures: paving the way for sustainable development financing in Africa

Leaders of the African Regional Forum on Sustainable Development (ARFSD-10) say this is the continent’s message to the Future Summit to be held in September 2024 in New York

African ministers and senior officials at the tenth session of the African Regional Forum on Sustainable Development (ARFSD-10) have called for timely reform of global financial institutions and the architecture for sustainable development and development finance in Africa.

This, they say, is the unified African message for the Future Summit to be held in September 2024 in New York. The message, comprising commitments aligned with Africa’s priorities, will be delivered as part of the planned future pact to be delivered at the Summit.

In their statement on effective delivery of sustainable, resilient and innovative solutions to strengthen Agenda 2030 and Agenda 2063 and eradicate poverty in times of multiple crises released at the close of ARFSD-10 in Addis Ababa, ministers called on participants at the Future Summit to consider and adopt, as part of the planned future compact, reforms for sustainable development and financing for development in Africa.

“The summit must ensure timely reform of global financial institutions and architecture so that they are fit for purpose and capable of serving the interests of Africa and developing countries elsewhere in the world,” the statement reads. .

The declaration was agreed in the context of the serious challenges facing African countries, including threats to inclusive, sustainable and resilient growth posed by conflict and instability, inadequate sustainable financing, debt stress, illicit financial flows , profit shifting, climate change, biodiversity loss, land degradation and pollution and human rights violations.

The declaration calls for the need to ensure the existence of global financial mechanisms that give Africa and other developing countries access to adequate and equitable concessional financing and affordable market-based resources to accelerate sustainable development. Furthermore, international tax governance needs to be reformed.

Ministers also express concern that the continent is far from achieving most of the SDG targets and has even gone backwards on some, continuing to be home to 55 percent of the world’s population living below the threshold. poverty, as outlined in the thematic paper on Fostering recovery and transformation in Africa to reduce inequalities and vulnerabilities.

In her closing speech at ARFSD-10, Hanan Morsy, Deputy Executive Secretary and Chief Economist of the Economic Commission for Africa, said Africa has the opportunity to reverse trends and accelerate actions to achieve the SDGs and the Africa we want to ensure access to basic social services, generate job creation and establish social protection and safety nets to reduce vulnerabilities and inequalities.

He highlighted that Africa cannot achieve the SDGs and Agenda 2063 without finance.

“Africa needs investments of $1.3 trillion a year to achieve the SDGs by 2030 and investments of more than $3 trillion in mitigation and adaptation alone to implement its Nationally Determined Contributions,” Ms Morsy said.

“The international community must also do its part and deliver on the promises made, as well as take deliberate steps to reform the international financial architecture; reform debt resolution mechanisms; and increase affordable financing.”

He also said that Africa must assume its rightful leadership position in finding solutions to its development challenges.

Ministers expressed concern about the serious challenges African countries face in accessing climate finance and the high cost they pay to mobilize private sector capital for investment, despite the multiplicity of climate-related funds to finance climate projects in emerging economies. and developing countries by 2030 to achieve the SDGs by 2030.