By Burnett Munthali
The African Development Bank (AfDB) says there is need for financiers to reform their financial system to support the growth transformation of the African continent.
AfDB president Akinwumi Adesina was speaking to the press ahead of the official opening of the bank’s annual meetings on Wednesday in Nairobi, Kenya.
He said the current global financial crisis architecture has much disadvantages on Africa amid insufficient funding gaps for infrastructure development,food security,energy and climate change.
Adesina further said there are poor ratings and credit downgrades placed on African countries’ sovereign bonds which have higher interest rates compared to their counterparts in other markets.
“This year, African countries are expected to pay at least $74billion in debt service, up from $17billion in 2010.
“One of the key reasons behind Africa’s slow structural transformation has to do with insufficient resource mobilization, both internally and externally. Internally, Africa generates too little fiscal revenues, with tax revenue mobilization largely oil and commodities dependent, volatile and lags other regions,” Adesina said.
The meeting is being held under the theme “Africa’s transformation, African Development Bank Group and reform of the global financial architecture.”
The meeting has brought together high level decision makers from across the African continent and others.
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