Strong call for innovative financing and reform of the international financial system to achieve the Sustainable Development Goals in Africa

In a strong appeal to stakeholders at the opening of the 10th Africa Regional Forum on Sustainable Development (ARFSD-10) in Addis Ababa, Ethiopia, Amina Mohammed, UN Deputy Secretary-General, said urgent action is needed to reduce capital flows to developing countries. especially in Africa to make the stimulation of the SDGs a reality. She also urged the international community to support Africa in its efforts to realize its vision for development through the SDGs 2030 agenda and Agenda 2063.

Ms Mohammed told the multi-stakeholder forum of Member State representatives, youth, civil society and private sector actors that African countries face significant challenges, including debt servicing, rising interest rates and limited fiscal space.

“Debt servicing in Africa is at a record high due to external shocks, leaving very little or no fiscal space to invest in sustainable development.” Furthermore, debt service represented a whopping 47.5% of government revenues in Sub-Saharan Africa last year. These are the most significant expenditures for essential services, as well as investments in the continent’s future in education and health,” she said.

According to Ms. Mohammed, at least $500 billion per year is needed to scale up affordable long-term financing for development, in addition to structural reforms within the institutions and rules that make up the international financial architecture.

Echoing the Deputy Secretary-General, Robinah Nabbanja, Prime Minister of Uganda, emphasized the need for reform of the global financial architecture to ensure favorable financing conditions, and emphasized the need for long-term financing for developing countries to achieve sustainable economies. She said climate-smart agriculture, technology and innovation are the key drivers for sustainable development on the continent.

The 10th ARFSD is being held under the theme: “Strengthening the 2030 Agenda for Sustainable Development and Agenda 2063 and eradicating poverty in times of multiple crises: effective delivery of sustainable, resilient and innovative solutions.”

Claver Gatete, Executive Secretary of the Economic Commission for Africa (ECA), for his part, emphasized the need for “innovative financing mechanisms, coupled with reforms in the global financial architecture,” to unlock new avenues for sustainable investment and inclusive growth in Africa.

He underlined the need to harness Africa’s vast natural resources, especially crucial minerals essential for the global transition to green economies. He also said renewable energy is the backbone for sustainable development, “with untapped opportunities to boost investment and advance energy security across the continent.”

Mr Gatete discussed the six transition pathways that the UN system has identified as key investment pathways for achieving the SDGs. These are: food systems; access and affordability of energy; digital connectivity; education; jobs and social protection; and climate change, biodiversity loss and pollution are, according to him, important investment routes for achieving the SDGs.

The ECA Executive Secretary also noted that climate challenges in Africa are reducing budgets by up to 5% of GDP annually, against the backdrop of high infrastructure and climate change needs, estimated at between 68 and 108 billion dollars per year.

“The African Continental Free Trade Area (AfCFTA) offers a unique opportunity to boost the agricultural industry and enhance food security, a cornerstone of resilience in the face of multifaceted challenges,” said Mr Gatete.

African Union Commission Vice-President Monique Nsanzabaganwa noted that African leaders have adopted the second-line implementation of the 2063 Agenda, demonstrating their unwavering commitment to realizing the aspirations of Africans.

“Countries must innovate and create strong institutions that are accountable and deliver results to citizens,” she added.

Ms Msanzabaganwa also noted that mobilizing domestic resources is the responsibility of governments and that there is a need for a fair and inclusive global tax system.

Sahle-work Zewde, Fitsum Assefa, Minister of Planning and Development, speaking on behalf of the President of the Federal Democratic Republic of Ethiopia, urged countries to “encourage youth-driven innovations as a powerful force in our match towards the SDGs to catalyze transformative change, accelerate progress and unlock new opportunities for inclusive development and poverty eradication.” She added that Ethiopia has made progress in mobilizing domestic and international resources for rapid and sustainable economic growth and development. This experience could be compared by other countries with a view to accelerating implementation of the remaining objectives of the strategic plan.

The Chairman of the outgoing Office of the ARFSD, Nigerien Minister of Hydraulics, Sanitation and Environment, Maizama Abdoulaye, emphasized the importance of countries’ commitment to implement inclusive sustainable development to make the continent one full of opportunities. Mr Abdoulaye said Africa must invest in blue and green bonds, which require infrastructure investment.