President William Ruto has urged global financial institutions to urgently restructure and refinance Africa’s most distressed economies, warning that without decisive reforms, the continent’s commitments to climate and development finance will remain out of reach. Speaking during the Second Africa Climate Summit in Addis Ababa, the President said meaningful financial reform is indispensable if African nations are to tackle both climate change and development challenges effectively.
Without debt restructuring, Africa’s shared commitment to climate and development finance will remain aspirational
President RutoIMF Common Framework Under Fire
The Head of State took issue with the International Monetary Fund (IMF)’s Common Framework, calling it inadequate in its current form. He stressed that restructuring must be fair, timely, and effective. According to President Ruto, at least 21 African countries are either in or at high risk of debt distress. Debt service alone is consuming an average of 13.5% of government spending—a figure that surpasses expenditure on critical services such as health and education. He noted that the macroeconomic realities directly undermine climate and development action, noting that many African countries have lost market access and are unable to secure new capital at sustainable rates.
Financial Reform Still Lagging
President William Ruto recalled that financial reform was a central theme during the inaugural Africa Climate Summit held in Nairobi in 2023. While acknowledging progress in the debate, he criticised the lack of tangible outcomes.
Concessional Financing Lifelines
The President stressed the importance of replenishing concessional financing mechanisms such as the International Development Association (IDA) and the African Development Fund (ADF), describing them as lifelines for developing countries. He lauded the African Development Bank for issuing $750 million in hybrid capital over the past two years, but noted that while commendable, the efforts are far too limited compared to Africa’s financial needs.
Role of MDBs and IMF
President Ruto further highlighted the central role of Multilateral Development Banks (MDBs) and the IMF in shaping the future of global climate finance. He called for bold reforms to ensure that these institutions deliver real solutions for Africa’s economic and environmental resilience.
