By Brian Kiprono - Reporter
Ethiopia, 13 May 2026 - United Nations Secretary-General António Guterres has called for urgent reforms to the global financial system, warning that African countries are being forced to pay unfairly high borrowing costs that are slowing development across the continent.
Speaking in Addis Ababa after the annual African Union–United Nations conference, Guterres said Africa continues to face deep inequality in global decision-making and international financing despite its growing economic potential.
He described the African Union as “the flagship for multilateralism in Africa” and said cooperation between the AU and the UN had strengthened in recent years through joint work on peace, development and human rights.
But the UN chief said major global systems still fail to serve African countries fairly.
“This is Africa’s historical injustice,” Guterres said while referring to the absence of permanent African representation on the United Nations Security Council.
“We cannot accept it.”
He renewed calls for reforms to the Security Council, saying global institutions must reflect modern realities if they are to remain credible and effective.
Guterres also turned his attention to the economic challenges facing African countries, arguing that the current financial system makes development more expensive for poorer nations.
According to the UN chief, many African countries are forced to borrow money at rates up to three times higher than global benchmark rates, limiting spending on critical services such as healthcare, education and water.
“We need to fix a system that makes it three times more expensive for developing countries to finance basic services,” he said.
Despite the challenges, Guterres said Africa holds enormous economic promise through its young population, natural resources and the African Continental Free Trade Area.
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He praised African-led financial reform initiatives, including efforts to establish an African credit rating agency and proposals for a new continental financial architecture.
On climate change, the UN Secretary-General warned that the world was dangerously close to exceeding the 1.5 degrees Celsius global warming target.
Still, he insisted the situation could be reversed through urgent action and investment in clean energy.
Although Africa receives only a small share of global clean energy investment, Guterres said the continent has the potential to become a major renewable energy powerhouse capable of producing more electricity than it consumes by 2040.
However, he noted that poor electricity grids, expensive financing and weak regulations continue to slow progress.
He called on wealthy countries to increase climate financing and support adaptation efforts in vulnerable nations.
Guterres also urged African countries to benefit more from their natural resources instead of remaining suppliers of raw materials to wealthier nations.
“No more exploitation. No more plundering,” he said.