United Nations Secretary-General Antonio Guterres on Thursday described Africa’s debt situation “as unsustainable and a recipe for social unrest”.
Speaking at the China-Africa cooperation summit in Beijing, he called for “deep reforms” to the “outdated, ineffective, and unfair international financial system”.
Guterres said these reforms would help provide developing countries with “the liquidity they need” to respond problems, including climate change.
China is hosting 50 African nations at the summit.
A growing debt crisis across the continent and the rising cost of living has resulted in civil unrest in several countries, including Kenya, in recent months.
Guterres said many African countries are mired in debt and struggling to invest in sustainable development.
“Many have no access to effective debt relief, enjoy scarce resources, and clearly insufficient concessional funding to respond to the basic needs of their population and protect them from the ravages of a climate crisis they did nothing to create.”
China has become a major player in Africa since the forum was founded in 2000.
Chinese companies have invested heavily in mining for the resources its industry needs, while its development banks have made loans to build railways, roads, and other infrastructure.
China has become sub-Saharan Africa’s largest bilateral trading partner but exports much more to the continent than it imports.
In part to reduce its trade deficit, African leaders are seeking Beijing’s help to expand their agricultural exports and industrialise their economies.
The UN chief said Chinese cooperation with African countries could drive development in many key areas including energy, food safety, and technology.
Source: africanews.com
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