President William Ruto has said the current international financial system punishes poor countries. He warned it keeps developing nations in cycles of debt and dependency.
Speaking at the Second Africa Climate Summit in Addis Ababa, Ethiopia, Ruto called the global financial system a “new form of colonialism.” He said it favors rich countries with low interest rates while charging high rates to poor nations.
“This system denies developing countries the resources they need to grow and improve the lives of their people. We will not stay silent until it is reformed,” Ruto said.
The President called for urgent debt restructuring and refinancing for Africa’s most vulnerable economies. He warned that without action, the continent’s climate and development goals will remain out of reach.
Ruto criticized the International Monetary Fund (IMF)’s Common Framework, calling it slow and ineffective. He said debt restructuring must be fair, timely, and practical.
He revealed that at least 21 African countries are in or at high risk of debt distress. Debt payments now take up an average of 13.5% of government budgets. This is more than what these countries spend on health and education.
“Many nations have lost market access and cannot get new loans at fair rates. This limits their ability to fight climate change and achieve development,” Ruto said.
The President called for a fair international financial order that gives all countries a chance to thrive. He emphasized that Africa must have the tools to invest in growth, climate action, and social development.
