Sustainable Development, Sustainable Debt: The context, quality and the use of debt matters, says UN’s Amina Mohammed

Africa faces a unique challenge when it comes to sustainable development and debt management. As Deputy Secretary-General of the United Nations, Amina Mohammed highlighted in a recent interview with CNBC Africa, the context, quality, and use of debt are crucial factors that must be considered in achieving the Sustainable Development Goals (SDGs). Mohammed emphasized the importance of understanding that Africa is not a homogeneous entity but comprises 54 diverse countries, each with its specific challenges and opportunities. She stressed the need for sustainable and strategic debt that is utilized for investments in infrastructure, industry, skills development, and other areas that foster economic growth and inclusivity. The interview took place on the sidelines of the IMF's International Conference in Senegal, where African leaders, policymakers, and development partners gathered to discuss the complexities of debt sustainability and sustainable development. Mohammed commended the dialogue between heads of state, governments, and international institutions, noting that it was essential for finding solutions to the continent's pressing issues. She highlighted the importance of moving beyond the perception of risks associated with debt and focusing on leveraging debt as a tool for sustainable development. One of the key themes that emerged from the interview was the need for African countries to align their development agendas with the SDGs. Mohammed noted that many countries on the continent had integrated the SDGs into their national development frameworks, signaling a commitment to the global goals. However, she also stressed the significant financing gap that exists in achieving the SDGs, particularly in the areas of education, health, and job creation. Mohammed underscored the importance of leveraging domestic resources, good debt, foreign direct investment, and partnerships with the private sector to bridge this gap. In discussing the barriers to development finance in Africa, Mohammed highlighted the importance of domestic resource mobilization, governance reforms, and international cooperation. She emphasized the role of political will from African leaders and the international community in finding innovative solutions to finance sustainable development. Mohammed acknowledged the progress that has been made in fostering collective action in Africa, citing the establishment of the African Continental Free Trade Area (AFCFTA) as a significant milestone in promoting economic integration and development cooperation. Addressing the debt challenge on the continent, Mohammed differentiated between a debt challenge and a revenue challenge, arguing that debt should be used strategically to drive economic growth and inclusivity. She emphasized the importance of investing in key sectors such as power, infrastructure, industry, and skills development to stimulate job creation and revenue generation. Mohammed called for a holistic approach to economic development that prioritizes inclusivity and infrastructure projects that benefit the broader population. Overall, Mohammed's insights shed light on the complexities and opportunities facing African countries in their pursuit of sustainable development and debt sustainability. As the deadline for the SDGs approaches, African nations must prioritize strategic debt management, domestic resource mobilization, and international cooperation to accelerate progress towards achieving the global goals. With concerted efforts and partnerships, Africa can overcome its development challenges and build a more prosperous and inclusive future.