By Wezzie Gausi in Nairobi, Kenya:
The African Development Bank (AfDB) has called on global financiers to reform their system to support the growth transformation agenda of the African continent.
AfDB President Akinwumi Adesina was speaking to journalists on Tuesday at the AfDB Annual Meetings in Nairobi, Kenya.
He said the current global financial crisis has many disadvantages in Africa amid insufficient funding gaps for infrastructure development, food security, energy and climate change.
Adesina said there are poor credit ratings and downgrades placed on African countries’ sovereign bonds, which have higher interests compared to counterparts in other markets.
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“This year, African countries are expected to pay at least $74 billion in debt service up from $17 billion in 2010.
“One of the key reasons behind Africa’s slow structural transformation has to do with insufficient resource mobilisation, both internally and externally. Internally, Africa generates too little fiscal revenues,” Adesin said. Commenting, Secretary to the Treasury Betchani Tchereni said most African nations have been lamenting the challenges they face in securing finance.
He said it would be fair if the space for concessional loans is broadened to include private sector players in high impact sectors such as mining, commercial agriculture and tourism.
“This is what we have been advocating for; as Malawi, for instance, we can really make progress on development if these loans are affordable and effective. We are happy that the bank is speaking on our behalf as that is what we need,” Tchereni said.
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The meeting is being held under the theme ‘Africa’s Transformation, African Development Bank Group and reform of The Global Financial Architecture.’
The meeting has brought together high level decision makers from across the African continent and others.
