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Ruto makes appeal to African banks amid global financial aid cuts

Ruto makes appeal to African banks amid global financial aid cuts
President William Ruto during the High-level consultative meeting at State House on Friday, June 6, 2025.PHOTO/@WilliamsRuto/X

President William Ruto has called on African countries to reimagine their approach to development and climate action by strengthening home-grown financial institutions, warning that reliance on external investment may no longer be viable in a shifting global landscape.

Speaking on Friday, June 6, 2025, at State House, Nairobi, during a high-level consultative meeting on the Africa Green Industrialisation Initiative (AGII), Ruto said the continent must adapt to a competitive and volatile geo-economic landscape and the ongoing reconfiguration of global trade policies.

“In this fractured world order, Africa must rethink its strategies and explore how to strengthen and leverage its institutions to compensate for the shortfall in external investment,” he told delegates.

The President convened the meeting in his capacity as Chair of the Committee of African Union Heads of State and Government on Climate Change.

The session brought together leaders from key African financial institutions, continental bodies, and major banks to discuss how to anchor green industrialisation efforts within the continent’s own financial and economic systems.

Notable attendees included Pierre Moukoko, Head of the African Union Reform Implementation Unit (representing the AU Commission Chairperson Mahmoud Ali Youssouf); Africa Continental Free Trade Area (AfCFTA) Secretary-General Wamkele Mene; Africa50 CEO Alain Ebobissé; and Haytham Elmaayergi, Executive Vice-President of the Africa Export-Import Bank.

Also present were Equity Bank Group CEO James Mwangi, Kenya Commercial Bank Group CEO Paul Russo, Standard Bank CEO Joshua Oigara, Ecobank Group CEO Jeremy Awori, and Frankline Edochie of the Africa Finance Corporation. Alex Mubiru, Director-General for East Africa at the African Development Bank (AfDB), also participated.

President Ruto, Head of States and Delegates posing for a photo session after holding a high level consultating meeting on Africa Green Industrialisatin Intiative at State House, Nairobi on Friday, June 6, 2025.PHOTO/@WilliamRuto/X

The Head of State underscored that Africa is not short of ideas or initiatives, but translating those into measurable outcomes remains a challenge.

“Africa faces the dual challenge of enhancing resilience to climate shocks while operating within limited fiscal space even as we pursue the imperatives of industrialisation and economic growth,” he said.

He noted the paradox of Africa’s immense natural and human resources against the backdrop of limited financial capacity. Drawing comparisons with global players, he pointed out how industrialised nations and China have made substantial progress in renewable energy and industrial development, while Africa struggles to catch up.

“While Africa is home to vast renewable energy potential and a rapidly growing population, it has yet to fully capitalise on these advantages in the face of constrained investment and technology access,” Ruto added.

The President stressed that institutions like the Africa Export-Import Bank, AfDB, and regional banks must play a bigger role in financing green growth, facilitating intra-Africa trade, and driving the continent’s industrial transformation.

AGII, the Africa Green Industrialisation Initiative, was first introduced at the inaugural Africa Climate Summit held in Nairobi in September 2023. It was later officially launched at COP28 in Dubai and subsequently endorsed by the African Union Assembly of Heads of State in February 2025.

The initiative aims to promote climate-resilient industrialisation through sustainable energy, green technology, and regional integration. It also seeks to reposition Africa as a global leader in low-carbon manufacturing, leveraging the continent’s renewable energy resources and emerging green industries.

President of the United States of America posing for a photo. PHOTO/@DonaldTrump/X
President of the United States of America posing for a photo. PHOTO/@DonaldTrump/X

The Trump tax policy

Ruto urged African leaders and institutions to act decisively and collaboratively to steer the continent towards a path of sustainable development.

“Our destiny must be secured through our own bold decisions, institutions, and unity of purpose,” he said. “Africa must not wait to be acted upon—we must act now, together.”

He also emphasised the commitment from participating institutions to align strategies with AGII’s framework and strengthen mechanisms for financing Africa’s green industrial future.

The meeting comes at a time when Kenya and other African countries face uncertainties about President Donald Trump’s tax policies.

Trump dismissed large-scale funding for climate programmes in developing countries, calling it “a waste of American tax dollars” and arguing that such investments weaken domestic industry. His statements come amid mounting global efforts to increase climate finance flows to the Global South — a priority area highlighted during the Africa Green Industrialisation Initiative and recent African Union consultations.

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