Global financial system ‘unfair’ to Africa-Governor Alic – One Citizen Daily Newspaper

By Dogga Luwo

South Sudan’s Central Bank Governor, Dr. James Alic Garang has called for reforms in the global financial system, arguing that it is biased against the continent.

Addressing the ongoing annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, DC, Dr. Alic highlighted issue of inadequate representation of the continent at the global stage.

“Africa, despite being nearly 20 per cent of the global population, has historically lacked adequate voting power in institutions like the International Monetary Fund and World Bank,” said Dr. Garang, who chairs the club of all EAC member state governors.

“This lack of representation translates into limited access to resources and higher borrowing costs for African countries,” Dr. Alic added.

Dr. Garang further pointed out that high-interest loans restrict funding for critical sectors like education and healthcare.

“UNCTAD (United Nations Conference on Trade and Development) data shows that developing countries face a 64 per cent increase in interest payments over the past decade, with Africa experiencing a staggering 132 per cent rise,” he said.

Dr. Garang emphasised the need for a comprehensive overhaul of the global financial system.

“The current system, with its skewed representation and burdensome debt, poses a significant threat to Africa’s development aspirations,” he said

“Urgent reforms are necessary to create a more equitable and sustainable financial architecture,” he added.

The ongoing meetings of the IMF and World Bank in 2024 brought together central bankers, finance ministers, partners, and civil society to discuss pressing global issues.

Key topics included global financial stability, poverty reduction, economic growth, and job creation, among others.

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