Fifty-sixth session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development
Victoria Falls, Zimbabwe
H.E. Ambassador Ashraf Sultan (Talking Points)
Tuesday, March 05, 2024
H.E Honorable Minister Mthuli Ncube – Republic of Zimbabwe Minister of Finance and Investment Promotion,
H.E Claver Gatete – Under Secretary General and Executive Secretary of the Economic Commission for Africa,
Excellencies ministers and Heads of delegations,
Distinguished representatives of Member States and Partners,
Ladies and Gentlemen,
Firstly, I would like to extend to you the greetings of H.E Dr. Mohamed Maait – the Arab Republic of Egypt Minister of Finance who couldn’t be with us today due to an equally important commitment that he could not regret.
I would also like to express my appreciation and gratitude to the people and government of Zimbabwe for the warm welcome and hospitality that we had since our arrival to the beautiful city of Victoria Falls,
It is my pleasure to thank the outgoing bureau and congratulate the new bureau specially Zimbabwe for its election as president and thank the Northern African Region for the confidence given to us to represent the region in the bureau of the committee.
As we convene here, we are acutely aware of the myriad challenges facing Africa, from the ongoing impacts of the global pandemic to climate change, economic inequalities, persistent poverty and regional conflicts. However, amidst these opportunities for transformation and growth, opportunities that we must seize with unwavering determination and collective action in order to meet with the aspirations of our people and the vision we hold for our continent's future. It calls upon us to not only recover from the setbacks we have faced but to emerge stronger, more resilient, and more inclusive than ever before.
For far too long, African countries have been marginalized within the international financial system, facing barriers that restrict their access to capital, impede economic growth, and perpetuate cycles of poverty. This inequity is not only unjust but also detrimental to the collective prosperity of our world.
We should recognize that Africa is not merely a continent of potential, but a region brimming with opportunities for investment, innovation, and sustainable development. Therefore, it is incumbent upon us to enact meaningful reforms that empower African nations to fully participate in the global economy on an equal footing.
First and foremost, we must address the issue of debt sustainability. Many African countries find themselves burdened by unsustainable levels of debt, stifling their ability to invest in critical infrastructure, healthcare, and education. It is imperative that we implement mechanisms to alleviate this debt burden, whether through debt-for-nature swaps, lowering the cost of borrowing for green investments, and introducing innovative financing solutions.
Secondly, we must enhance financial inclusion across the continent. Millions of Africans remain excluded from formal banking systems, limiting their access to credit, savings, and insurance services. By promoting the expansion of digital financial services, fostering inclusive banking practices, and investing in financial literacy programs, we can empower individuals and businesses to participate more actively in the economy.
Furthermore, we must prioritize investment in key sectors such as agriculture, renewable energy, and technology. These sectors not only have the potential to drive economic growth and create employment opportunities but also to foster sustainable development and mitigate the impacts of climate change.
Additionally, we must advocate for fair and transparent trade practices that promote intra-African trade and facilitate access to global markets for African goods and services. By dismantling trade barriers, reducing tariffs, and fostering regional economic integration, we can unlock the full potential of Africa's vibrant economies.
Lastly, the international financial institution should increase its support for the African countries, and the regional development banks and should be straightened and capitalized to support the development in the continental.
In conclusion, reforming the global financial architecture to be more favorable to Africa is not only a moral imperative but also a strategic imperative for the prosperity and stability of our world. By embracing inclusivity, sustainability, and partnership, we can unleash the full potential of Africa and build a brighter future for generations to come.
The current global financial architecture is not supportive of developing countries and more specifically African countries. The recurrent economic challenges call for action to address two of the main challenges grabbing the African economies which are the high debt levels and climate change.
In this regard, Egypt's Ministry of Finance, in collaboration with the Economic Commission for Africa, announced the “Sustainable Debt Coalition” initiative during Finance Day on the margin of COP27 held in Sharm El Sheikh – Egypt in 2022. The Coalition aims to address the critical intersection of debt, development, and climate change, to generate and widen the necessary fiscal space for developing countries to pursue their development and climate ambitions, which is especially
important considering the current international economic developments that hinder the ability of many developing countries to achieve their socio-economic development goals as planned.
Building on the support expressed by resolution of the Council of Ministers of the UNECA, in March 2023, to the creation of the Coalition, and its goals, we are planning to meet in Egypt with the aim of developing a shared framework for sustainable debt; formulate an action plan to promote a supportive approach to sustainable development, taking into account debt-for-climate investment swaps and other innovative solutions and establish a roadmap for the future development of the Coalition.
The Coalition’s consideration of debt includes reducing the cost of debt in new issuances particularly those which incorporate positive sustainable and environmental goals, exploring sovereign debt guarantees, and other forms of blended finance, to reduce the costs of capital for debtor nations at scale, as well as exploring other tools aiming to free fiscal space for investments with positive environmental outcomes.
Speaking about climate change issues , we believe that there is a need that the Economic Commission for Africa, along with relevant partners to study the impact of carbon taxes on the competitiveness of african products and services. In this assignment we may benefit from the EU Cabon Boarder Adjustment Mechanism.
Lastly, I would like to highlight that Egypt will be organising an African Head of States meeting on the margins of the 10th session of the Sustainable Development Forum that will be held in Cairo next April followed by Fourth Edition of the Aswan Forum.
Thank You for your kind attention!