Help alleviate Africa’s debt burden – UN chief

AMID rising geopolitical tensions, conflicts, and deepening economic challenges across Africa, UN Secretary-General António Guterres has called for urgent reforms to the global financial system to alleviate Africa’s debt burden and promote sustainable development.

Speaking at the Forum on China-Africa Cooperation (FOCAC) Summit, Guterres emphasized the need for systemic changes to address Africa’s struggles with debt, poverty, and the mounting impacts of climate change.

With conflicts raging in Ukraine, Gaza, and Sudan, Guterres pointed to the broader economic fallout affecting African nations. “Many African countries are mired in debt and struggling to invest in sustainable development,” he noted. Guterres criticized the lack of effective debt relief measures and highlighted the scarcity of concessional financing for developing nations. The current situation, he warned, is “unsustainable” and risks fueling social unrest.

At the heart of Guterres’ appeal is a call for comprehensive reform of the global financial architecture, which he described as outdated and unfairly skewed against developing nations. He advocated for expanding the lending capacity of Multilateral Development Banks and promoting long-term debt restructuring centered on people’s needs. Guterres also urged the rechanneling of Special Drawing Rights (SDRs) to benefit the countries most in need, particularly in Africa.

As Africa grapples with the dual crises of economic hardship and climate change, Guterres underscored the critical role of China’s partnership with the continent. “China’s partnership with the African continent is the main pillar of South-South cooperation,” he said, lauding China’s position as Africa’s largest trading partner. He also emphasized the potential for China-Africa cooperation to drive transformative sectors such as renewable energy, food systems, and digital connectivity.

However, the Secretary-General did not shy away from calling for reforms within the multilateral system itself, describing it as lagging behind in addressing the world’s most urgent challenges. He expressed frustration over Africa’s exclusion from permanent membership in the UN Security Council, calling it a “historic injustice” that must be corrected.

Guterres’ remarks come at a time when Africa’s economies are increasingly vulnerable, with many countries unable to access the resources needed to protect their populations from climate impacts. He urged both China and Africa to fully engage in finding sustainable solutions, reaffirming the UN’s commitment to supporting their partnership toward peace, development, and human rights. “The support of China and Africa for these reforms is essential,” Guterres concluded, calling for a renewed focus on equitable development and a reformed financial system that works for all.