(Ecofin Agency) - According to the Economic Commission for Africa, a fairer international capital market and a more efficient carbon market can help reduce vulnerabilities in the continent.

Africa needs a fairer and equitable international financial system, Antonio Pedro (photo), acting executive secretary of the Economic Commission for Africa (ECA), said according to an opening statement published by the ECA today, March 15. According to the executive, this would help mobilize the resources needed to reduce the inequalities and vulnerabilities faced by people in the region.  

“Currently, many countries simply cannot access international financial markets because of rising interest rates, and existing debt relief mechanisms do not work well for us,”  he said at the 41st meeting of the Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development. 

Pedro also argued that the carbon market could provide a significant resource mobilization opportunity for Africa. If Africa leverages its tropical forests and develops its carbon markets, it could unlock an estimated $82 billion in value annually and create 167 million additional jobs.

Africa wants to achieve Sustainable Development Goals, but it faces many challenges, such as poverty, inflation, and recent international financial pressures. According to an ECA report, global risks are piling up and putting additional pressure on the budgets of African countries, which were heavily stretched during the Covid-19 pandemic and subsequent global events.

With an average of 3.8% expected for 2022, economic growth has resumed on the continent but, the level is not yet enough to address the challenges faced by residents. Presently, 695 million people,  or about 50% of the African population, are estimated to be in or near poverty.

Antonio Pedro's call for a fairer and more equitable international financial system is a legitimate and now constant demand from Africa to mobilize the resources needed to reduce the inequalities and vulnerabilities faced by its people.