G7 supports Pres. Ruto on reforming the international financial architecture

The G7 summit has responded positively to President William Ruto’s call for more support for Africa’s development.

At the summit in Italy, President Ruto urged G7 leaders to champion the reform of the international financial architecture to promote equality and inclusiveness.

He said the reforms would provide the Global South, especially Africa, with access to concessional, flexible, long-term financing, and increase the participation of developing countries in decision-making.

For its part, the G7 is committed to modernizing the international financial architecture and enabling it to meet today’s global challenges.

As part of their resolutions, the G7 pledged to support initiatives such as the G20 Compact with Africa and the Paris Pact for People and Planet (4P).

These initiatives aim to improve cooperation among global stakeholders and increase financing for development, climate solutions and private sector investments.

G7 leaders also called on the international community to promote sustainable and transparent financing for developing countries committed to substantive reforms and private investment.

They stressed the importance of domestic resource mobilization as detailed in the Nairobi-Washington Initiative launched by Presidents Ruto and Joe Biden when the Kenyan leader was on a state visit to the US last month.

Leaders pledged to work with various stakeholders to provide coordinated support from multilateral development banks, facilitate beneficial private financing and encourage private sector involvement to ensure that multilateral support effectively benefits developing countries.

They pledged to work with the International Monetary Fund, the World Bank and other crucial institutions to advance this plan, test it in several countries and ultimately implement it by the end of 2024.

In addition, the G7 has pledged to increase support for African countries pursuing sustainable development, democratic governance, global stability, prosperity and compliance with the United Nations Charter.

The G7 plans to align its efforts with the African Union’s Agenda 2063 and the specific needs and priorities of African countries, including improved local and regional food security, infrastructure, trade and agricultural productivity.

The group also supports the operationalization of the African Continental Free Trade Area, which members believe will be crucial for Africa’s growth in the coming decade. They aim to strengthen mutually beneficial and equitable cooperation with African countries and regional organizations, improve local resource management and promote increased private investment.

The G7 endorsed African countries’ calls for a greater voice in international fora, welcomed the African Union’s participation in the G20 as a permanent member and supported the creation of a third Chair for Sub-Saharan Africa on the Governing Council the IMF in November.

The G7 reiterated its support for the G20 Compact with Africa, which aims to boost private sector investment, promote structural reforms, support local entrepreneurship and improve cooperation in the energy sector.

The G7 Partnership for Global Infrastructure and Investment, including initiatives such as the EU Global Gateway, provides a framework to advance a vision of sustainable, resilient and economically viable infrastructure in Africa, with transparent project selection, procurement and financing.

The G7 reaffirmed its unwavering commitment to the 2030 Agenda for Sustainable Development and pledged to redouble efforts to accelerate progress towards the Sustainable Development Goals. Their goal is to achieve long-term sustainable development, maintain strong environmental, social and governance standards and promote shared prosperity worldwide.

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