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Angolan President Lourenço Calls for Overhaul of Global Financial System to Meet Africa’s Development Needs

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Angolan President João Lourenço, who also chairs the African Union, delivered a powerful call on Monday for a comprehensive reform of global financial institutions to better support Africa's development agenda

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Angolan President João Lourenço, who also chairs the African Union, delivered a powerful call on Monday for a comprehensive reform of global financial institutions to better support Africa’s development agenda. Speaking at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain, he stressed the pressing need to relieve the continent’s mounting sovereign debt and channel investment into infrastructure projects tailored to Africa’s unique economic circumstances.

Lourenço’s remarks come at a time of deepening fiscal pressures for African nations. The African Development Bank reports that the continent’s external debt soared to about USD 1.1 trillion in 2023, with debt service payments frequently outpacing public spending on critical areas like healthcare and education. He warned that this imbalance is severely hindering progress toward both the UN Sustainable Development Goals and the African Union’s Agenda 2063.

Highlighting infrastructure as a cornerstone of economic growth, Lourenço emphasised the necessity of investments in energy, transport, and digital networks to drive trade, industrialisation, and job creation. However, he noted that the current global financing system is poorly aligned with the economic realities and debt profiles of African countries.

The president urged international financial institutions—including multilateral lenders, private investors, and donor governments—to adopt financing models more responsive to Africa’s needs. These include long-term, low-cost funding options and frameworks to manage investment risk, which could unlock crucial public-private partnerships.

He also called for a stronger voice for developing nations in global financial decision-making, echoing a wider push from the Global South for fairer representation in institutions like the IMF and World Bank.

The FfD4 conference, held from June 30 to July 3, gathers a wide range of global stakeholders to discuss inclusive strategies for funding sustainable development, closing economic disparities, and advancing climate goals.

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Africa’s infrastructure investment needs remain massive. According to the World Bank, the continent requires between USD 130 billion and USD 170 billion annually, yet there’s an estimated funding shortfall of up to USD 108 billion each year. In this context, Lourenço’s call for a more pragmatic and equitable financial framework is both urgent and timely, adding momentum to the global conversation about reforming financial systems to support truly inclusive development.