ADDIS ABABA, Ethiopia – President William Ruto has renewed calls for urgent and effective debt restructuring for Africa’s most vulnerable economies, warning that without decisive reforms, the continent’s commitments to climate and development finance will remain out of reach.
Speaking at the second Africa Climate Summit in Addis Ababa, Ethiopia, on Friday, Ruto said African nations cannot simultaneously tackle climate change and pursue development goals under the current financial architecture.
“Without debt restructuring, Africa’s shared commitment to climate and development finance will remain aspirational,” he said.
The President criticised the International Monetary Fund (IMF)’s Common Framework, describing it as inadequate and in need of urgent overhaul.
“Restructuring must be fair, timely, and effective. The IMF’s Common Framework must be reformed to deliver real relief—not merely more process,” he told delegates.
According to Ruto, at least 21 African countries are either in or at high risk of debt distress, with debt servicing consuming an average of 13.5 per cent of government spending—often more than what is allocated to health and education.
“Many of these countries have lost market access, unable to secure new capital or refinance at sustainable rates and tenors,” he said. “These macroeconomic realities directly undermine climate and development action.”
Ruto noted that while financial reform was a central theme of the inaugural Africa Climate Summit in Nairobi in 2023, progress has largely remained in rhetoric rather than practice.
“Despite progress in the debate, we have not seen meaningful change in practice,” he added.
He urged a scale-up in replenishing concessional financing windows such as the International Development Association (IDA) and the African Development Fund (ADF), which he described as “lifelines” for developing countries.
“Unless replenished at scale, development finance will remain severely constrained,” Ruto said.
The President welcomed the African Development Bank’s issuance of $750 million in hybrid capital in recent years but cautioned that such steps are insufficient given the enormity of Africa’s financing needs.
He stressed that multilateral development banks (MDBs) and the IMF must play a central role in shaping a fairer and more effective climate finance system.
