NAIROBI, Aug. 5 -- The international economic and financial regime should be reformed urgently to address imbalances that work against the socioeconomic needs of African countries, campaigners said Monday at a virtual forum in Nairobi, the Kenyan capital.

The global financial system in its current form has disadvantaged African nations grappling with shrinking fiscal space, the climate crisis and high youth unemployment, the campaigners noted.

Jane Nalungu, the executive director of the Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI)-Uganda, said that by reforming the international financial architecture that was established more than 70 years ago, African states will have better leverage in domestic revenue mobilization, green transition and poverty alleviation.

"The ongoing debate about reforming the global economic and trading system comes at the opportune moment for Africa as we explore ways to address chronic stagnation that has impaired (the) provision of critical services like education and health," Nalungu said.

According to Nalungu, even globalization has not unleashed the desired socioeconomic benefits in Africa as the continent finds itself trading more with cheaper raw agricultural commodities.

In addition, Nalungu said that over-dependence on commodities has locked out African countries from a global trading system that favors trade in technology, services and value-added goods.

By reforming the international financial and trade treaties, it will be possible to address the cycle of indebtedness, trade deficit and balance of payment challenges weighing heavily on African states, Nalungu observed.

Chenai Mukumba, the executive director of Tax Justice Network Africa, said the ongoing push for democratization of the global financial and tax regime will benefit the continent in terms of boosting domestic resource mobilization, taming public debts, enhancing access to basic services like water, education, sanitation and health.

Mukumba believed that Africa could leverage its vast mineral wealth, domestic reforms and improved accountability to spur economic growth, limit borrowing and ease political tensions.

She added that tightening oversight is key to sealing legal loopholes that have escalated capital flight and tax evasion by multinational firms that have invested in the continent, denying governments revenue to support the provision of critical services like clean water, electricity, education and health.

Jason Braganza, the executive director of the African Forum and Network on Debt and Development, said the urgency to reform the global financial architecture is informed by the need to hasten a green, just and resilient transition in a continent already dealing with climate emergencies, sluggish growth, threat of pandemics and social tensions linked to poverty.

  - Xinhua