Duale makes bold demand for Ksh167T concessional loan at continental stage

Cabinet Secretary in the Ministry of Environment, Climate Change and Forestry Aden Duale has revived the push for financial infrastructure re-engineering to avoid worsening the debt situation in Africa.

Speaking at the 10th Special Session of the African Ministerial Conference on the Environment (AMCEN) on Friday night September 6, 2024, CS Duale emphasized the urgent need for a new global climate finance target to replace the outdated Ksh12.9 trillion ($100 billion) goal.

Instead, Duale advocated for raising the target to Ksh167 trillion per year but through grants and concessional loans to save most African countries from debt traps.

“Africa is calling for $1.3 trillion per year by 2030, primarily through grants and concessional loans, to avoid worsening the debt situation in developing countries,” Duale stated.

With Kenya being the Chair of the African Group of Negotiators (AGN), Duale explains the intention of presenting the new African countries’ demands at the upcoming COP29 in Baku, Azerbaijan.

According to the CS, the key focus will be securing climate finance, advancing adaptation efforts, and finalizing carbon market regulations.

Duale made the bold sentiments during the African Ministerial Conference on the Environment held in Abidjan.

More demands

During the meeting where several leaders from different African countries convened, Duale also pushed for the need for increasing adaptation funding, especially for sectors like agriculture, health, and infrastructure, where the current funding levels fall far short of the estimated Ksh51.6 trillion ($400 billion) required annually.

Additionally, CS Duale stressed the importance of establishing sustainable financing for the Loss and Damage Fund, which has received Ksh90 billion ($700 million) in initial pledges but urgently needs long-term solutions.

“The AGN will present Africa’s unified position at the upcoming UN General Assembly, calling for active participation and engagement in COP29’s discussions and negotiations,” a statement shared by the Ministry of Environment read in part.

Ruto’s push

Duale’s latest move comes in support of President William Ruto has been at the forefront of advocating for financial reforms.

Through various channels, Ruto has challenged the main lenders, the World Bank and the International Monetary Fund (IMF), to revise their loan terms to give African countries a longer repayment period but with lower interests.

Ruto has more than once argued that the current loaning terms threaten to slide most African countries into a debt trap.

However, most lenders are yet to honour the call from Ruto and other African countries forcing them to open the restructuring conversation to avoid defaulting.