UN Secretary-General raises concerns that Africa’s growing debt burden is creating conditions for potential social unrest, urging global action to address the continent’s economic challenges.
Describing Africa’s debt situation as “unsustainable” and a potential trigger for social unrest, United Nations Secretary-General Antonio Guterres spoke out on Thursday.
During the China-Africa cooperation summit held in Beijing, he urged for significant modifications to be made to the international financial system which is currently deemed obsolete, ineffective and inequitable.
“These reforms,” said Guterres, “would facilitate the provision of necessary liquidity to developing countries in addressing pressing concerns such as climate change.”
The summit is being attended by 50 African nations, which are hosted by China.
Several countries, including Kenya, have seen civil unrest in recent months due to a rising cost of living and an increasing debt crisis that spans across the continent.
According to Guterres, numerous African nations are facing the challenge of being burdened with debt and finding it difficult to allocate resources towards sustainable development.
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There are numerous individuals who lack access to efficient debt relief, have limited resources, and inadequate concessional funding. This inability to respond to the fundamental needs of their populace leaves them vulnerable against the impacts of a climate crisis that was not caused by them.
Since the establishment of the forum in 2000, China has emerged as a significant contributor to Africa’s growth.
Mining industry resources have been the focus of significant investment by Chinese enterprises, while their development banks extended loans to fund infrastructure projects such as railways and roads.
While China has become the biggest bilateral trading partner of sub-Saharan Africa, it exports significantly more to this region than its imports.
African leaders are seeking assistance from Beijing to expand their agricultural exports and industrialize their economies, partially aiming at decreasing the trade deficit.
Chinese collaboration with African nations has the potential to propel progress in several crucial domains such as energy, food security, and technology according to the head of UN.
