Africa, led by Kenya’s President William Ruto, is calling for a fair financial system that treats all countries equally. Many African nations are struggling with debt caused by climate change, and they want the world to recognize their investment potential. President Ruto highlighted that high-interest rates for development capital are limiting progress. He emphasized that Africa is not asking for special treatment but a conversation to address the challenges. Climate change is causing economic damage in Africa, forcing countries to divert resources from growth to deal with its effects.
“Africa pays 5 times higher interest on its debt, compared to others. The architecture is built in a way where if you borrow you keep going into more and more debt.
We want a fair financial system that treats everyone equally.” , H.E. William Ruto, President, Kenya
The Africa Climate Summit is an opportunity for Africa to speak about its climate concerns globally. President Ruto urged all stakeholders to keep their promises and act swiftly because climate change is an emergency. He sees climate change as an opportunity for Africa to transition to green energy and achieve prosperity.
African youth have immense potential, and the continent aims to limit emissions and reach net zero by 2050. Kenya offered to host the Global Centre for Adaptation as part of its commitment to green growth. US special climate envoy John Kerry expressed the importance of taking action to address climate change and recognized Africa’s significant role in this global challenge, calling for a Loss and Damage Fund to address climate-related losses and damages.
The V20 Group, which includes finance ministers from vulnerable countries, also released a statement urging international financial institutions to quickly create a global financial system that’s better suited to address climate change. They want this system to help these vulnerable nations with financing for climate action and sustainable development. The V20 are calling for urgent action to address these issues and provide financial support for climate-related projects.