Ruto Urges Global Financial Reform at BRICS Summit Amid Growing African Debt
At the BRICS (Brazil, Russia, India, China, and South Africa) summit, where he presented new proposals regarding the continent’s escalating debt burden, President William Ruto renewed his calls for reforms to the global financial system.
In a speech delivered by Foreign Affairs Cabinet Secretary Alfred Mutua at an event in Johannesburg on Thursday, Kenya advocated for the renegotiation or suspension of African debt.
He explained that the global financial system was unbalanced even though many African nations struggle to repay their debts due to the current state of the global economy, which has been hampered by the global pandemic.
Some African nations, such as Ghana, have defaulted on their obligation due to the continent’s ballooning debt. Other nations, such as Zambia, have also been forced to renegotiate their Ksh912 billion in debt.
“It is proposed that debt repayments be renegotiated and suspended for some time, say 10, 15, or even 20 years, so that the available funds can be utilized for development.
We do not wish to continue borrowing because all of our funds are committed to debt service. We must break the cycle,” the speech stated in part.
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Ruto maintained, however, that the nation was committed to honoring its obligation to repay the debts.
To advance the proposal, a systemic resolution of the developing country debt overhang, as opposed to case-by-case debt default exercises under the G20 Common Framework.
Ruto also advocated for the adoption of African Free Trade to bolster the continent’s economy and empower African nations to be financially independent at the event.
Kenya also utilized this occasion to advocate for the inclusion of African nations on the Permanent Seats of the United Nations Security Council.
The voice and participation of developing countries in decision-making and global economic governance must be widened and strengthened immediately.
The BRICS alliance consists of Brazil, Russia, India, China, and South Africa. Next year, Iran, Saudi Arabia, Egypt, Argentina, the UAE, and Ethiopia will join the group.
Ruto Urges Global Financial Reform at BRICS Summit Amid Growing African Debt
