The Governor of the Bank of South Sudan, Dr. James Garang, who also serves as Chairman of the East African Community (EAC) Monetary Affairs Committee, expressed deep concern over the restrictive effects of high-interest loans on critical sectors such as education and healthcare.
Speaking at the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C, Dr. Garang emphasized the urgent need for financial reforms to support equitable and sustainable growth in Africa.
“The current financial system, with its inequitable representation and high debt burden, significantly threatens Africa’s development aspirations,” Dr. Garang remarked. He called for a comprehensive overhaul of global financial structures to better serve African nations, which often face high borrowing costs and limited access to financial resources.
As Chair of the EAC’s central bank governors, Dr. Garang highlighted that Africa, despite representing nearly 20 percent of the global population, has historically held minimal voting power within major financial institutions like the IMF and World Bank. This underrepresentation, he explained, has directly contributed to the continent’s high borrowing costs and limited financial resources.
“UNCTAD data shows that developing countries have faced a 64 percent increase in interest payments over the past decade, with African countries enduring a staggering 132 percent rise,” Dr. Garang noted. He added that these burdens not only limit funding for vital sectors but also stall Africa’s development trajectory.
Dr. Garang’s statements underscore the critical need for reforms to balance representation and reduce financial barriers, particularly as African nations work toward long-term growth and development.
