African nations are not receiving the necessary debt relief, according to United Nations Secretary-General Antonio Guterres, who also noted that the continent of Africa is currently in a very challenging situation due to a lack of financial support.
Upon the start of the African Union Summit in Addis Abeba, Guterres remarked during a news conference held at the organization’s headquarters that a number of difficulties must first be overcome in order to tap into the potential of the continent.
“A broken and unfair global financial system that denies many African nations the debt relief and financing at preferential rates that they require, “added he. “Systems and institutions, including those related to gender equality, social protections, job development, and health and education, are underfunded due to a lack of support.
At the AU Summit’s opening ceremony earlier in the day, Guterres spoke about the effect debt has on the continent’s economy. He stressed that when international investment lenders establish their financial strategies, developing African nations are frequently left out.
With one hand tied behind their backs, African nations are unable to invest in these vital sectors and move up the economic ladder.
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At the UN Security Council and the Bretton Woods Institutions, Africa is noticeably underrepresented, according to Guterres.
He said, “We need a new debt architecture that gives vulnerable countries, including middle-income countries, debt relief and re-structuring while giving countries in need prompt debt suspension and write-downs.”
Ethiopian Prime Minister Abiy Ahmed spoke first to open the AU Summit, which was presided over by AU Commission Chairman Moussa Faki Mahamat.
The transfer of the AU chairmanship from Senegalese President Macky Sall to Comoros President Azali Assoumani was part of the opening ceremony.
Year of AfCFTA: Acceleration of the African Continental Free Trade Area is the subject of the AU assembly this year.
