Nigeria's Finance Minister Taiwo Oyedele has highlighted the disproportionate cost of borrowing faced by developing countries, saying they pay an estimated $500 billion more than developed economies to refinance their debt.
Speaking on Tuesday in Bangkok, Oyedele said debt vulnerability remains a major obstacle to inclusive economic growth across developing nations, limiting their ability to finance critical development priorities.
Citing a communiqué from the Group of 24 (G24), the minister called attention to the financial pressures confronting developing economies as they seek to refinance existing obligations while funding infrastructure, social services and other economic priorities.
The G24, a group representing developing countries in discussions on international monetary and development finance, has urged the World Bank and other development partners to help mobilise at least $300 billion annually in private-sector financing by 2035.
The proposed financing target is intended to expand access to capital for developing economies and support investment needed to drive sustainable and inclusive growth.
For countries across Africa, where governments face competing demands to finance infrastructure, strengthen public services and stimulate economic activity, the cost of borrowing remains a significant policy concern.
Higher refinancing costs can place additional pressure on government budgets, leaving fewer resources available for development projects and increasing the challenge of maintaining sustainable debt levels.
Oyedele’s remarks underscore growing calls for reforms to international development finance that would improve access to affordable funding for emerging and developing economies.
Achieving the G24’s proposed private-financing target will require coordinated efforts from multilateral development institutions and other financing partners to mobilise investment at scale.
Source: Reuters
Reporting: Rae Wee
Writing: David Stanway
Editing: Martin Petty
