Kenyan President William Ruto has called for reforms to lower Africa’s cost of capital and expand investment in development….reports Africa Daily News Desk
Kenyan President William Ruto has called for reforms to the global financial system to reduce the cost of borrowing for African countries and help unlock greater investment in development.
Speaking at a High Level Reflection on the Pact for the Future in New York, Ruto said Africa had helped shape the agreement adopted by world leaders two years ago, but stressed that its commitments now needed to produce tangible results.
The Pact for the Future was adopted by UN member states on September 22, 2024, and includes commitments on sustainable development, development financing, youth and future generations, international peace and security, and global governance.
Ruto said the priorities for Africa included creating greater opportunities for young people and establishing a fairer system for financing development.
He said high debt costs were putting pressure on national budgets and limiting the resources available for investment in jobs, education, healthcare and infrastructure.
“We need reforms that lower Africa’s cost of capital, expand guarantees and risk-sharing instruments to unlock investment, and enable countries to mobilise more of their own resources,” Ruto said.
“Money Africa can rightfully tax is money Africa need not borrow.”
The Kenyan president called for reforms that would make development finance more affordable and improve access to investment across the continent.
The Pact for the Future itself includes commitments to close the Sustainable Development Goal financing gap, provide affordable and predictable development finance and strengthen domestic resource mobilisation. The agreement also calls for reforms to the international financial architecture and greater access to finance for developing countries.
The United Nations has previously highlighted the high cost of capital faced by African countries. During the adoption of the Pact in 2024, the UN Economic Commission for Africa said African countries faced borrowing costs several times higher than those of major developed economies, while debt pressures were limiting spending on development priorities.
Ruto addressed the High Level Reflection, which was convened by Namibia, Zambia, the African Union and the Economic Commission for Africa in New York.
His remarks placed development finance and opportunities for Africa’s young population at the centre of discussions on implementing the Pact for the Future, as countries consider how to translate its commitments into practical outcomes.
