President João Lourenço, in his capacity as Chairperson of the African Union, has made a compelling call for urgent reform of global financial institutions to better serve Africa’s development ambitions.
Speaking at the Fourth International Conference on Financing for Development (FfD4) in Seville, Spain, on 1 July 2025, Lourenço underlined the mounting burden of sovereign debt and the critical need for infrastructure investment that aligns with African realities.
African economies face mounting fiscal constraints as external debt soars to nearly $1.1 trillion, according to the African Development Bank. Servicing this debt often exceeds spending on vital sectors like health and education, obstructing progress towards the UN Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063.
“Africa cannot develop without robust infrastructure,” Lourenço stressed, pointing to reliable energy, modern transport, and digital connectivity as crucial drivers of trade, industrialisation, agriculture, and jobs. Yet, as he noted, the current global financial architecture does not adequately cater for Africa’s unique economic structures and debt vulnerabilities.
The President urged multilateral development banks, private investors, and donor nations to adopt long-term, concessional financing and robust risk-mitigation tools that unlock public-private partnerships. He also echoed calls from the Global South for a more equitable voice in decision-making processes at institutions like the IMF and the World Bank.
This year’s FfD4 summit in Seville brings together leaders, UN agencies, development banks, civil society and the private sector to address global financing solutions that bridge disparities, advance climate action, and build resilient economies.
According to the World Bank, Africa’s infrastructure financing gap stands at up to $108 billion each year. Lourenço’s appeal for pragmatic, Africa-focused investment structures is a timely reminder that without sustainable funding, the continent’s immense potential will remain stifled by systemic barriers.
Source: Further Africa
