African finance ministers said on Saturday that international organizations and wealthy nations must help Africa cope with increasing debt, a food crisis, and climate change.
Russia’s invasion of Ukraine shook financial markets and pushed food prices in underdeveloped African nations already reeling from the COVID-19 epidemic.
Drought, floods, and cyclones have all been worsened by climate change throughout the continent.
African countries are suffering. “They really aren’t responsible for these devastating effects (of climate change),” said Comoros Finance Minister Mze Abdou Mohamed Chanfiou during a news conference with two African counterparts during the IMF and World Bank spring meetings in Washington. The three were the finance ministers of the continent.
“Even though the IMF, World Bank, and our regional institutions have established emergency funds, these funds do not appear to be adequate to respond to this.”
Last year, the IMF created the Resilience and Sustainability Trust (RST) to distribute excess IMF SDR monies from wealthier nations to impoverished and vulnerable middle-income countries.
The trust offers long-term concessional financing for climate change adaptation and more environmentally friendly energy.
Rwanda, Barbados, Costa Rica, Bangladesh, and Jamaica have signed credit agreements with the institution, while 44 more countries have shown interest.
Three African finance ministers have urged richer countries to meet their trust financing responsibilities.
IMF Managing Director Kristalina Georgieva unveiled $40 billion in RST pledges on Friday. More pledges were received on Friday, “meaning that there is a very good likelihood that we can build it even further in terms of financial strength.”
African finance ministers have called for a G20-backed framework to help states restructure their debt.
Since the outbreak, Zambia and Ghana have defaulted on their national debt. They have joined the effort, but it has had little effect.
African governments, according to the ministers, have responsibility for tackling food shortages and high food prices caused by weather and the Ukraine crisis.
At the same news conference on Saturday, Sierra Leone Finance Minister Sheku A.F. Bangura stated that Africa must harness its agricultural sector to enhance local production and reduce import disruptions.
“Our crisis is permanent,” he pointed out. “We need a much stronger and more consolidated approach.”
