President William Ruto has called for acceleration of reform measures to the Global Financial Architecture whose platform he said Africa's ambitious goal to transform into a green industrial powerhouse hinges.
In his address to the ongoing Italy-Africa Summit in Rome on Monday, the President reiterated that African countries pay five times as much for their debt, driven by both real and perceived risk factors.
“We must accelerate reform measures to the Global Financial Architecture, including adjustments to debt treatment.”
While giving Kenya’s perspective, the President said transitioning away from fossil fuels and tripling renewables by 2030 is the world’s best bet to stay on a climate-safe path.
He said the continent set a goal to increase its renewable capacity from 56 GW today to at least 300 GW by 2030 during the inaugural Africa Climate Summit in September 2023 held in Nairobi.
The President, however, noted that despite renewable energy presenting a crucial opportunity to propel industrialization and transform Africa into a green powerhouse, the continent is disadvantaged in securing the right type and amount of capital.
“Out of the $3 trillion invested over the past two decades, only $60 billion reached our continent. Energy security remains a distant reality for approximately 600 million people in sub-Saharan Africa lacking access to electricity,” he said.
“Additionally, 1 billion Africans still lack access to clean cooking, emphasising the urgent need to reshape our energy landscape for dignified lives and livelihoods.”
Ruto said while Africa’s renewable capacity target of at least 300 Gigawatts by 2030 may seem modest compared to the global goal of 11,000 Gigawatts, the continent can invest in its young population and create a vibrant, self-sustaining economy that would motivate the youth to stay and build home.
Realizing this vision, he noted, requires commitment and a collaborative approach
“Africa's renewable energy potential and natural resources can aid in meeting Europe's energy needs while fostering economic growth and technological advancement on our continent. Our discussions on beneficial partnerships must now translate into action,” he said.
Ruto said that ideas launched during the COP28 in Dubai must be sustained to maturity to avert the risk of expanding the decarbonization gap.
He listed the Africa Green Industrialization Initiative (AGII), which aims to attract green investments to the continent and the Accelerated Partnership for Renewables in Africa.
“We invite Italy to partner with us, including in the upcoming Investment Forum we will co-host with IRENA, where Italian companies and financial institutions can explore new investment opportunities and help us shape a policy and regulatory environment that works for all,” Ruto said.
“We invite Italy to lend its support to these critical agendas also in its role as the G7 Presidency.”
Reforms on the Global Financial Architecture were a major theme during the Paris, Nairobi, and COP28 summits where Ruto played a leading role in advocating for change.
