African Development Bank Prioritises Ruto’s Request on Debt Financing


The African Development Bank confirmed prioritising President William Ruto’s request to have fair financing opportunities when dishing out loans to African countries.

In a statement, the Bank on May 6 stated that besides embracing President Ruto’s rallying call, it would be instituting policy reforms for Kenya and other African countries.

The African Development Bank Group stated that policy reforms will be a top agenda in its annual meetings scheduled for May 27 to May 31 which will be held in Nairobi.

Further, the bank reported that there would be the co-construction of a new international financial pact with a “win-win” approach, as advocated by Ruto.

The headquarters of the African Development Bank Group (AfDB) in Abidjan, Côte d’Ivoire.

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AfDB

According to the lender, the  theme for the meetings will be  “Africa’s Transformation, the African Development Bank Group and the Reform of the Global Financial Architecture.”

“To be held in Nairobi from 27-31 May 2024, the meetings will provide a platform for Africa to take up the challenge of reforming global financing institutions as outlined by President Ruto and other African leaders, and to propose a way forward,” reported AfDB.

In 2023 during the African Union’s 5th biannual coordination meeting, Ruto stated that multilateral development banks had historically applied skewed lending policies that disadvantage African countries.

“Today, Africa has $640 billion in outstanding debt and pays nearly $70 billion in interest every year. It would only be fair for us to have a financing mechanism that treats us on an equal footing, “Ruto stated.

Additionally, Ruto is said to have advocated for a win-win  approach between African nations and developed nations while lending rather than viewing the matter as a competition.

Speaking in June 2023 during a roundtable on the Alliance for Green Infrastructure in Africa Ruto made it crystal clear that far reaching reforms were needed to achieve equity.

“Let’s change the discourse! Let’s not talk about us against them, North against South. Let’s adopt a win-win approach,” Ruto stated.

The AFDB has funded several projects in the country including projects in agriculture, and geothermal power generation plants.

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