Ojiambo: Why reforming the global financial architecture should be fast-tracked

The United Nations Global Compact is advocating for urgent reforms in the global financial system to enable Africa to achieve key objectives outlined in the Millennium Development Goals. Sanda Ojiambo, the Assistant Secretary-General of the UN Global Compact, emphasized the need for Africa to take control of its narrative and resources during an exclusive interview with CNBC Africa's Aby Agina. Ojiambo highlighted that it is time for Africa to shape its destiny, leverage its natural resources, and contribute to the global landscape. One of the central themes discussed during the Africa CEO Forum was the importance of Africa being actively involved in decision-making processes rather than being passive recipients. Ojiambo expressed that the continent must be at the forefront of discussions concerning its resources, market potential, labor force, and technological advancements. By actively participating in these dialogues, African nations can influence how resources are utilized and ensure that they are well-positioned on the global stage. Key Points: 1. Urgent Need for Financial System Reform: Ojiambo underscored the necessity of expediting reforms in the financial architecture to address inequities and facilitate access to affordable financing in Africa. With many African countries grappling with debt burdens and limited resources for essential services like healthcare and education, reforming the financial system becomes imperative. 2. Emphasis on Partnership and Collaboration: While acknowledging the significance of partnerships in driving progress, Ojiambo stressed the importance of Africa taking the lead and actively participating in decision-making processes. By fostering intra-Africa trade, harmonizing regulations, and leveraging the continent's resources, African nations can enhance their collective strength and promote development. 3. Synergy Between Agenda 2030 and Agenda 2063: Ojiambo highlighted the complementary nature of the Sustainable Development Goals (SDGs) under Agenda 2030 and the aspirations outlined in Agenda 2063 by the African Union. By aligning efforts towards achieving these goals, African nations can address social, economic, and environmental challenges while promoting sustainable development and regional integration. In a statement addressing the need for reform in the financial architecture, Ojiambo remarked, "The reality is that countries requiring financial support the most often struggle to secure it under the current system. African leaders are advocating for fairer terms and increased funding to address pressing issues such as climate resilience and sustainable development." Ojiambo referenced initiatives led by global leaders like Prime Minister Mia Motley's Bridgetown initiative and UN Secretary-General António Guterres' call for reviewing Special Drawing Rights to enhance financing for climate resilience. With the establishment of the Africa Club aimed at fostering unity and collaboration among African leaders, Ojiambo commended such initiatives that amplify the continent's voice and drive progress. She emphasized the critical role of the private sector in advancing both Agenda 2030 and Agenda 2063, highlighting the need for sustainable and resilient business practices. By setting up a network in Rwanda, the UN Global Compact aims to engage with the local private sector to promote sustainability and good governance practices. Ojiambo lauded Rwanda's leadership in digital innovation and emphasized the importance of public-private partnerships in driving economic growth and competitiveness. She stressed the role of sustainable business principles in enhancing resilience and promoting environmental conservation. In conclusion, Ojiambo reiterated the urgency of reforming the financial system to bolster Africa's resilience to global challenges. She underscored the importance of securing energy access, reviewing financial mechanisms, and enhancing intra-Africa trade to propel economic growth and transition. As Africa navigates the complex landscape of climate threats and sustainable development, Ojiambo emphasized the need for concerted efforts to achieve a prosperous and resilient future.