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Benedict Tambo
The United Nations Economic Commission for Africa (UNECA) has called on countries to explore reforms to the common debt relief framework to better address Africa’s growing debt problem.
At a joint press conference held on the sidelines of the recently concluded 2024 High-Level Political Forum (HLPF) in New York, UNECA Executive Secretary Clavel Gatete highlighted the challenges of accessing financing for the continent’s priorities, “especially concessional finance that is longer-term and cheaper”.
“Reform of the global financing system is urgent as it reduces access to critical resources needed to achieve the Sustainable Development Goals,” said Mr. Ghat.
He noted that Africa’s debt has grown 192% from 2010 to 2023, according to the African Development Bank, which states: “African countries are paying back $163 billion a year, and their external debt stock is $1.1 trillion. This increase is the highest we have ever seen.”
He added: “This means that by servicing the debt, countries have little room to achieve the Sustainable Development Goals and the African Union’s next 10-year plan.”
Mr. Ghat noted that Africa needs to mobilize domestic resources to address illicit financial flows and improve tax collection, and stressed that developing capital markets is essential to provide long-term resources for private sector engagement in Africa.
In addition, Ghat noted that restructured green, blue and sustainability-linked bonds could attract more investors to finance climate-related solutions.
He said ECA was working with countries to strengthen domestic resource mobilization, for example through capital markets, to increase self-financing and financial sustainability in Africa.
He also stressed the need to increase fiscal space and address related issues, such as peacebuilding and conflict prevention and youth participation in sustainable development processes, to ensure long-term progress.
Cristina Duarte, director of the Office of the Special Adviser on Africa at the United Nations Headquarters, said that the implementation of the Sustainable Development Goals is off track, with only 12% of the 140 targets having been achieved.
“We need to understand the root causes of the financing challenges facing the continent and focus on sustainable financing and institutional strengthening in Africa to build resilience,” said Ms. Duarte.
She stressed the importance of long-term solutions, such as addressing economic and financial flows to ease Africa’s debt distress and achieve the Sustainable Development Goals.
The HLPF Africa Day aims to highlight key issues raised at the African Regional Forum on Sustainable Development (ARFSD) and other major consultations.
The joint briefing showcases how the African Union, the United Nations Office of the Special Adviser on Africa and ECA are collaborating to support African Member States in implementing the Sustainable Development Goals and the African Union’s Agenda 2063.
The High-Level Political Forum on Sustainable Development (HLPF) brings together Member States from around the world to build on regional and local experiences, to draw on experiences of building resilience and innovative solutions, and to forge pathways for accelerating the implementation of the SDGs.
Countries present their Voluntary National Reviews (VNRs) at the High-Level Political Forum.
They also examined global trends and their impact on implementation progress. South Sudan submitted its first voluntary national report, highlighting efforts to mitigate challenges in implementing the SDGs.
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