Capital markets must make borrowing conditions flexible for developing countries – Amin Adam

The Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam, has stressed the importance of making terms flexible for developing countries.

He noted that the conditions that come with borrowing or getting funding from international markets are not fair and flexible enough to facilitate the independence of African countries and developing countries.

He intimated that if the conditionalities are relaxed, countries will be able to build enough capacity.

“There is no free lunch, so no developed country is going to give you grants without conditions. Some of these conditions do not provide the environment for us to build our capacity. So, we need to be able to go the market and borrow but we want the market environment to be right for us and borrow at rates pertaining to that of developed countries,” Dr. Amin Adam said while speaking to the media on the sidelines of the Africa Climate Summit 2023 in Nairobi, Kenya.

“We need fairness in the international capital market so we can compete other than relying on grants and aids that come with conditions that we are unable to meet”, he further added.

The Minister bemoaned the fact that out of the $2.3 trillion allotted for investment in renewable energy across the world, only $55 billion has been invested in Africa due to allegedly inconsistent policies.

He, therefore, asked for a collaborative effort between African countries to address these challenges.

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