St. John's:Mr. Samuel Okudzeto Ablakwa, the Minister of Foreign Affairs, has called on Commonwealth member countries to lead reforms in the global financial architecture to tackle systemic inequalities faced by developing nations, particularly in the Global South.
According to Ghana News Agency, Mr. Ablakwa highlighted the disproportionate borrowing costs faced by African countries, noting that access to credit is more than eight times as expensive compared to countries in the Global North. This disparity exacerbates the continent's debt burden and stymies development efforts.
Speaking at the Commonwealth Foreign Ministers' Roundtable in St. John's, Antigua and Barbuda, Mr. Ablakwa emphasized the need for collective action to create a more equitable and responsive global financial system. He pointed out that the current system is structurally biased against developing economies, with factors such as sovereign credit ratings and high-risk premiums driving up borrowing costs and limiting investment opportunities in Africa.
He referenced the Highly Indebted Poor Countries (HIPC) Initiative of 2000, acknowledging that despite past debt relief, many African nations are again facing similar financial challenges. To address this, Mr. Ablakwa called for reforms enabling African countries to secure affordable capital for essential sectors like infrastructure, education, and healthcare.
Mr. Ablakwa also stressed the importance of creating economic opportunities for Africa's young population, underlined by a median age of 19. He expressed support for the Bridgetown Initiative, led by Barbados, urging the Commonwealth to focus on reforming the international financial system and enhancing access to development financing.
In addition, the Minister advocated for greater resource sovereignty, encouraging African countries to progress from merely exporting raw materials to engaging in local value addition and industrialization. He cited the Accra Reset Initiative by President John Dramani Mahama, which aims to increase African control over natural resources for the benefit of local communities.
Highlighting the global demand for critical minerals needed for technologies like artificial intelligence, Mr. Ablakwa warned against partnerships that exploit Africa's resources without ensuring fair benefits. He called for international collaborations that promote local processing, technology transfer, and job creation.
Furthermore, Mr. Ablakwa addressed governance issues, urging Commonwealth countries to prioritize local government reforms to manage rapid urbanization effectively. He mentioned Ghana's efforts to implement constitutional reforms for electing local government officials, aiming to deepen democracy and strengthen community participation.
He encouraged sharing experiences and best practices in decentralization among Commonwealth states to enhance democratic accountability and development outcomes. Mr. Ablakwa also commended the Commonwealth Parliamentary Association for its role in bolstering Ghana's parliamentary institutions and anti-corruption efforts, reaffirming Ghana's commitment to working collaboratively with Commonwealth partners.