Ruto Demands Overhaul of Unjust Global Financial System to Aid Africa’s Growth

By Samuel Ouma

President William Ruto has called for urgent reforms to the global financial architecture to address Africa's destabilizing debt and climate vulnerabilities.

Speaking at the 59th Annual Meetings of the African Development Bank Group and the African Development Fund at the Kenyatta International Convention Centre in Nairobi, President Ruto highlighted the pressing need to revamp financial systems that currently impose high financing interest rates and exacerbate climate shocks, hampering governmental revenues across the continent.

He emphasized that these financial constraints prevent developing countries, including Africa, from investing in low-carbon and climate-resilient development, thus jeopardizing climate action and sustainable development goals.

“A better, more responsive, and fairer international development financial architecture is urgently needed. Time is of the essence,” he said.

The event was attended by notable leaders, including Presidents Denis Sassou Nguesso of Congo, Paul Kagame of Rwanda, Emmerson Mnangagwa of Zimbabwe, Hassan Sheikh Mohamud of Somalia, and Mohamed Menfi of the Presidential Council of Libya.

Also present were Burundi's Vice-President Prosper Bazombanza, Prime Ministers Saara Kuugongelwa-Amadhila of Namibia, Ali Lamine Zeine of Niger, African Development Bank President Akinwumi Adesina, and African Union Commission Chairperson Moussa Faki Mahamat.

Ruto emphasized that Africa must mobilize resources to invest in infrastructure and industrialization to achieve rapid economic growth, but it faces tremendous obstacles owing to a global financial system that is misaligned with its goals.

Despite its immense human, mineral, and agricultural resources, he challenged the international financial system for labelling Africa as a hazardous borrower.

"We are told it is safe to mine in spaces where there is conflict, but it is risky to lend to African economies. What a contradiction?" he remarked.

He urged African countries to work together to reduce intra-African economic barriers through the African Continental Free Economic Agreement.

“We are struggling to look for markets everywhere except in our continent. We must first sell in the market that we have,” he said.

Ruto also urged for African Union reforms to improve its efficiency, asking that the African Union Commission be given the authority to efficiently carry out African economic diplomacy.

He emphasized the importance of the African Union taking the lead in safeguarding the continent's peace, security, and stability, as well as working with African states to close the infrastructural gap. He proposed increasing the African Union's accountability by having its budget authorized by the Pan-African Parliament and lowering the number of MPs from 275 to 110 to save money.

He also recommended establishing the African Court of Justice to handle judicial issues internally.