Mong’are of UDA Communications speaks at the Academy of Athens, championing reforms to create a fairer global financial system for developing nations.
By Maximilla Wafula, Sub Editor The County Diary News
ATHENS, GREECE-
Africa must have a stronger voice in the global financial system, with urgent
reforms needed to make international finance fairer, more equitable and
accessible to developing economies, UDA Director of Communication Nathaniel
Mong’are has said.
Speaking at the Academy of Athens on the sidelines of
the Athens Democracy Forum, Mong’are championed Kenya’s position on reforming
the global financial architecture, arguing that the current system has not
adequately addressed the needs and realities of countries in the Global South.
Mong’are called for the establishment of new financial
institutions beyond the World Bank and International Monetary Fund (IMF),
institutions commonly associated with the Bretton Woods system.
He argued that countries in the Global South continue
to face higher borrowing costs than wealthier Western and European economies,
making it more difficult for developing nations to finance infrastructure,
social programmes and other development priorities.
Mong’are pointed to the origins of the World Bank and
IMF, which were created in 1944 at a time when many African countries,
including Kenya, were still under colonial rule and had no role in designing
the institutions or shaping their policies.
He argued that the global economic environment has
changed dramatically since the institutions were established and that the
international financial system must now be redesigned to reflect the realities
of the modern world.
The World Bank was established in the aftermath of the
Second World War, while the IMF was created to support international monetary
cooperation and a system of fixed exchange rates linked to gold. The fixed-rate
system was later abandoned, with the international financial system undergoing
significant changes over the decades.
Mong’are also backed the proposed Africa Credit Rating
Agency (AfCRA), which the African Union is expected to launch in Mauritius on
October 7.
He said an African credit-rating agency could provide
a more Africa-focused assessment of the continent's economies and reduce
dependence on international ratings agencies such as S&P Global Ratings,
Moody’s and Fitch Ratings.
According to Mong’are, perceptions of risk surrounding
African economies can contribute to higher borrowing costs, and he argued that
an African agency could offer assessments that take greater account of the
continent's economic fundamentals and circumstances.
The push for AfCRA comes amid broader calls for
reforms to the international financial system and greater African participation
in decisions affecting the continent's access to capital.
Mong’are's remarks in Athens underline Kenya's broader
call for a global financial system that gives developing countries greater
representation and access to affordable financing.
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