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There is need to reform the global financial architecture-Mudavadi

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Africa is rooting for a financial model which shall ensure that developing countries have fair and significant access to affordable and long-term concessional resources Prime Cabinet Secretary Musalia Mudavadi has said.

This he said will help close the financing gap and realize the envisaged social and economic transformation to uplift the developing countries.

Mudavadi said the global financial architecture as currently structured is not adequately aligned to deliver on the required resources to transform the continent as the envisaged economic transformation in the continent requires substantial resources to be achieved.

“The financial architecture we advocate today for Africa should strongly integrate the most challenging development issues of debt sustainability and climate vulnerabilities while enabling the continent to achieve the Sustainable Development Goals (SDGs) and Agenda 2063 commitments.”

Mudavadi who spoke when he officially closed the 59th annual meeting of the African Development Bank Group emphasized on the urgency of reforming the global financial architecture to be responsive to the needs of developing countries.

He said the theme of this year’s Annual meeting “Africa’s Transformation, the African Development Bank Group, and the Reform of the Global Financial Architecture” has provided a unique platform to address Africa’s challenges and opportunities at the highest decision-making levels.

“The escalating debt burden compounded by effects of climate change and the pressure to unwind these effects in readiness for economic transformation is critical to provide affordable and concessional long-term financing for developing countries.” he noted.

“The engagement of the Heads of State and Government in the Presidential Dialogues, High-level plenary sessions for the launch of the Bank’s flagship publication – the 2024 African Economic Outlook (AEO), and thematic knowledge events, underscores the critical role of both technical and political goodwill in the transformation of our economies.” he added.

Mudavadi applauded the Development Partners for enabling capacity to tackle the multiple development challenges facing many developing countries that include food insecurity, the effects of climate change, fragility, rising debts, and economic vulnerabilities.

“The imperative of a strong replenishment of the 17th cycle of the African Development Fund of USD25 billion cannot be overstated. This will complement support from International Development Association (IDA), the World Bank’s concessional window in supporting the low- income countries. To support this call, the Government of Kenya has committed to contribute USD20million to the African Development Fund.” said Mudavadi.

Mudavadi pledged for a strong support for putting in place the enablers necessary to leverage the equity of African Development Fund in the international capital markets.

This he said will go in tandem with the continuing discussions on options to ensure the Fund’s long-term financial sustainability, including the retention of best practices for financial and risk management.

“To address the pressing development challenges of African economies we must pull together. With the exemplary leadership demonstrated by the President of the Africa Development Bank, Akinwumi Adesina, and his unwavering dedication and transformation of the Bank, African leaders should emulate the same for us to make positive strides.” acknowledged Mudavadi.

The week long AfDB group meeting was attended by over 10,000 delegates and Heads of State and Government which is a testament of commitment towards the Bank’s vision and agenda.

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