William Ruto: Over 10 African Countries Are In Debt Distress Due To Climate Change

• President William Ruto revealed that 13 African countries are classified as risk-averse in debt repayment
• Ruto pointed out that the major cause of debt distress in the continent is high interest rates and climate change
• He called on the international financial system to rethink its terms and offer reasonable and equitable interests on loans

President William Ruto has revealed that most African countries are in debt distress due to climate change.

Ruto noted that the adverse drought across the the continent has hit many countries, forcing them to divert resources for economic growth to mitigation measures.

Drought burdens countries' budgets

Speaking during the second day of the Africa Climate Summit 2023 at KICC Nairobi on Tuesday, September 5, Ruto said Kenya alone lost 2 million heads of livestock due to drought.

The head of state argued that, if combined with what Ethiopia, Somalia and Djibouti lost, the Horn of Africa lost over 9 million heads of livestock.

"In Kenya, I had to increase resources meant for school feeding from 1.5 million children to 4 million kids in the school feeding programme. There, when we say climate change is destroying our economies, we are not making statements," said Ruto as quoted by Citizen TV.

High international loan interest rates

Ruto called for a fair international financial system that harbours equitability in interest rates.

The head of state decried that African countries pay five times more in interest rates, calling on the international financial lenders to re-engineer the terms.

"13 countries are classified as high risk, and another 17 countries are classified as moderate risk. The biggest contributor to debt distress in our continent is high-interest rates.

"We pay five times more than others. We are not asking to be favoured or be treated differently. That is not too much to ask," he argued.

Ruto to borrow KSh 80b in climate financing

The president advocated for eased interest rates even as his administration eyed KSh 80 billion from the International Monetary Fund (IMF) for climate financing.

The funds will be disbursed through the IMF’s Resilience and Sustainability Facility (RSF).

According to a statement by the IMF, the amount will support the country's ambitious efforts to build resilience to climate change and catalyse further private climate financing, Business Daily reported.

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Ruto said Africa is suffering debt distress due to high interest rates.

African Leaders Call for Financing, Debt Relief to Battle Climate Change - Bloomberg

Ruto, Adesina Say Tackling Climate Depends on Africa Debt Fix - Bloomberg