Ruto pushes rich nations to boost funding for poor States

Business
By Brian Ngugi | Apr 30, 2024
African Heads of State and Governments Ghana Nana Akufo Addo, Ugandan Yoweri Kaguta Museveni, Mauritanian, Islamic republic and Au Char, Mohammed Quld Ghazouani and President William Ruto among others at the World Bank IDA African Heads of State Summit at KICC on April 29, 2024. [Samson Wire, Standard]

President William Ruto has called for increased global funding to African countries, in a move seen as the continuation of his push for a fair financial system regardless of their regions of origin.

In a speech delivered during the official opening of the International Development Association (IDA21) Summit at the Kenyatta International Convention Centre (KICC) in Nairobi, yesterday, Ruto called for what he termed an "African driven socio-economic development, executed with transparency and inclusiveness."

"Our proposal and request entail a vision for Africa-driven socio-economic development, executed with transparency and inclusiveness, and our case is straightforward: Significant capital injection into IDA is crucial. The G20 Independent Expert Group recommends tripling IDA's financing capacity to $279 billion (Sh37.12 trillion) by 2030 while maintaining the essential concessional nature of its financing. At the very least, let us not ignore or wish away this expert advice."

"Given the enormity of the challenge faced by African countries and its global implications as a collective emergency, we call to meet us at this historic moment of solidarity and respond effectively by increasing their IDA contribution from $93 billion (Sh12 trillion) raised in 2021 to at least $120 billion (Sh16.4 trillion) in 2024," he said.

He noted that African economies face deepening development and debt crisis that threatens their economic stability, and urgent climate emergencies that demand immediate and collective action for our planet's survival.

"We seek not just funding, but a partnership for progress. African nations propose a robust plan for Climate Positive Growth, aligning with the Nairobi Declaration from last year's Africa Climate Summit, to ensure stable, dignified, and sustainable livelihoods across our continent," he added.

The meeting brought together Presidents Yoweri Museveni (Uganda), Samia Suluhu (Tanzania), Evariste Ndayishimiye (Burundi), Nana Akufo-Addo (Ghana) and Lazarus Chakwera (Malawi).

Others were Ethiopia Prime Minister Abiy Ahmed, Ivory Coast counterpart Robert Beugre Mambe, Guinea's Amadou Oury Barh and World Bank President Ajay Banga, among others. Mr Banga said there are plans to review rules that guide IDA's lending to developing countries to make them simpler with expectations that it can achieve more impact.

"We are working IDA more efficiently, able to deliver faster by cutting burdensome rules, requirements and redundancies. We believe that a simpler and reimagined IDA can be deployed more focused to make a meaningful impact to advance the fundamental needs (such as) energy access, and healthcare availability to realise the agricultural potential of this continent and build critical infrastructure and skills in its people," he said.

"We see boundless opportunities to advance your development goals, but you will have to work for it and that should guide our discussion as we go forward today."

He also called for more effort from both governments and private sector players in accelerating growth in Africa, noting that the continent had vast resources including its people.

"This summit symbolises our objective commitment to accelerating progress. But we have to move with urgency, we have to move with purpose and we have to have a focus on results and impact," said Banga.

The Summit brings together African governments, civil society, and youth to voice their ambitions and call for even greater support from the World Bank's International Development Association (IDA) to translate visions into action on the continent.

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