President William Ruto has called for reforms to reduce Africa’s cost of capital, saying high debt costs are squeezing government budgets and limiting investment in key sectors.
Ruto said African countries need greater access to affordable financing to create opportunities for young people and support development.
“High debt costs are squeezing national budgets and limiting investment in jobs, education, health and infrastructure,” Ruto said.
He was speaking in New York during a High-Level Reflection on the Pact for the Future convened by Namibia, Zambia, the African Union and the Economic Commission for Africa.
Ruto said Africa had played a role in shaping the Pact for the Future, adopted by world leaders two years ago, and that its commitments should now translate into tangible results.
“For Africa, the test is clear: opportunities for our young people and a fairer system for financing our development,” he said.
The President called for measures to lower the continent’s cost of capital, expand guarantees and risk-sharing instruments and enable countries to mobilise more domestic resources.
“We need reforms that lower Africa’s cost of capital, expand guarantees and risk-sharing instruments to unlock investment, and enable countries to mobilise more of their own resources,” he said.
Ruto also urged African countries to strengthen domestic revenue mobilisation as part of efforts to reduce reliance on borrowing.
“Money Africa can rightfully tax is money Africa need not borrow,” he said.
