UN Secretary General Guterres calls for global financial reforms that are in favour of African countries

United Nations Secretary-General Antonio Guterres has called for global financial reforms that will favour developing African countries.

He said the current financial structure by Multilateral Development Banks (MDBs) is injust and does not reflect today's Africa or a world that is growing increasingly multipolar.

Gutteres added the current system is thus holding African countries from developing because many are spending a lot in paying their debts.

‘‘As detailed in my remarks, Africa can be a renewable energy superpower. Now is the time to bring together African countries with developed countries, financial institutions and technology companies to create a true African Renewable Energy Alliance,’’ said Gutters.

He added: ‘‘And all of that requires addressing another injustice; an outdated, unfair and dysfunctional global financial system.’’

He was speaking during a press conference at the sidelines of the ongoing Africa Climate Summit in Nairobi.

The summit is themed; ‘‘Driving Green Growth 7 Climate Finance Solutions For Africa, The World.’’

According to Gutteres, on average, African countries pay four times more for borrowing than the United States and eight times more than the wealthiest European countries.

He said turbocharging a just and equitable green transition while supporting development more broadly across Africa requires a dramatic course correction.

‘‘This means ensuring an effective debt relief mechanism that supports payment suspensions, longer lending terms and lower rates,’’ he said.

Guterres said this can only be possible if there is recapitalising[u1] and changing the business model of MDBs so they can massively leverage private finance at affordable rates to help developing countries build truly sustainable economies.

He called for a Sustainable Development Goals(SDG) stimulus package of at least USD500 billion(Sh72 trillion) per year to help developing countries to invest in their people and the systems they need.

The UN boss also called for African representation at the current global financial and security institutions, which he said many were created in the aftermath of World War 2 when many African countries were still being ruled by colonial powers and were therefore not at the table.

‘‘We see this injustice playing out in the African context today. Global institutions need to step up, guarantee African representation, and respond to African needs and potential,’’ said Gutteres.

It is this situation that he said he will continue to advocate for African representation in the upcoming meetings.

''It's time to end the injustices that are holding Africa back,’’ he said.