STATEMENT BY AFRICAN GROUP CHAIR H. E. Osama Abdel Khalek
PERMENANT REPRESENTATIVE OF EGYPT TO THE UN
NEW YORK, 7TH FEBRUARY 2025
Mr. President,
Excellencies,
Distinguished Delegates,
1. I have the honor to deliver this statement on behalf of the African Group.
2. Africa continues to face a complex array of challenges impeding sustainable development.
3. The issue of illicit financial flows (IFFs), which drain $90 billion annually from the continent, remains a significant impediment to domestic resource mobilization. We advocate for the successful conclusion of the process to draft the Framework Convention on International Tax Cooperation to promote equitable global tax standards. Strengthening domestic tax systems, addressing tax evasion and improving revenue collection are critical to expanding Africa’s fiscal space.
4. The African Group views the process of drafting the Framework Convention on International Tax Cooperation as a foundation for addressing the systemic inequities in international tax governance. We recognize the significant role that fair and effective tax systems play in mobilizing domestic resources for sustainable development. By establishing a strong framework convention for international tax cooperation, we ensure that all countries, especially those in Africa and the global south, can generate the necessary revenues to achieve the Sustainable Development Goals.
5. Our external debt burden, which reached $655.6 billion in 2022, accounts for 22.4% of the continent's GDP. Over 60% of African countries spend more on debt servicing than on healthcare, with some allocating four times as much to debt repayment than to education and health combined. This situation undermines progress in critical sectors and deepens economic vulnerability.
6. The African Group constantly reiterates the call for the establishment of a multilateral sovereign debt workout mechanism that is inclusive, transparent and timely. Additionally, we support the creation of a global debt authority within the UN to oversee this mechanism and ensure fairness in restructuring processes.
7. Private sector investment is indispensable for Africa's development. High borrowing costs, limited risk mitigation instruments, and inadequate capital markets deter private investment.
8. Reforming the international financial architecture is pivotal. The African Group welcomes the establishment of the African Credit Rating Agency to provide fairer and more representative assessments of African economies. This initiative is a critical step toward addressing biases in existing sovereign credit ratings and reducing borrowing costs.
9. Investments in frontier technologies are crucial to closing the digital divide and enhancing Africa’s participation in the global innovation landscape. Artificial intelligence (AI), digital infrastructure and advanced analytics offer transformative potential for economic diversification and competitiveness. Africa requires targeted investments to build these capabilities while ensuring the continent's representation in global technological innovation.
I thank you.
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