Unequal access to credit hurting Africa 

Africa will find it harder to recover from global shocks as long as she continues accessing credit at tougher terms than the rest of the world.

Dr Akinwumi Adesina, the President of the African Development Bank (AfDB), says the wide disparity in accessing financial opportunities mean Africa will take time to recover or deal with the continual problems such as climate change that require investments in green technology.

“We need to create a world that is equitable and stable, where we bear in mind the needs of others and not only what we need matters,” he said.

“We are all in the same boat. The global development boat is leaking, and the consequences will be devastating if the leakage is not blocked.”

Read: African countries face steep costs in global credit market

He spoke virtually at the 2023 Kofi Annan Eminent Speaker Lecture where he was joined by Jim Yong Kim, ex-World Bank President.

Every region may suffer food insecurity, poor governance, insecurity, conflicts, global pandemics, rising debt, and climate change but Africa has been the most hurt as it is also still developing and imports most of its goods and also, industries are still nascent.

Globally, leaders agree to these obligations. For example, every country must contribute towards keeping global warming manageable by adopting renewable energy and stop extreme hunger that afflicts 2.3 billion people.

“No one must be left behind in access to acceptable health care. All lives matter for the rich and the poor,” he said.

The challenges facing the world is not lack of resources but resources highly concentrated in developed countries with few extremely rich while world development boat is leaking.

Read: Is debt restructuring solution for Africa’s problems?

“Global financing architecture is failing development in the world as it faces multiple challenges. It needs to be reformed and transformed to tackle global challenges and accelerate achievement of SDGs.

“We must ensure equal opportunities for all regardless of one’s economic, social, and racial background. and must create a global level playing field for just and equitable world.’’

The International communities, he said, have critical roles to change the situation and not, “allowing nearly three billion people almost half of world’s humanity to subsist on $2 or less per day in world of unprecedented wealth”.