Excellencies, dear delegates,
Allow me to take this opportunity to touch on the connection between trade marginalization, debt, and inclusive development, highlighting how Africa＊s position in global trade has eroded its financial sovereignty and contributed to ongoing state fragility.
Trade remains a powerful driver of economic development.
However, like any engine, its potential can only be realized when guided by clear and purposeful direction.
As the Secretary-General emphasized last June, without proper orientation, international trade can deepen global inequalities, exacerbating the divide both between and within nations.
This has been a long-standing reality for much of the developing world, particularly in Africa.
What have we learned over the past 40 years?
African economies have demonstrated significant growth, often surpassing global averages.
Between 2000 and 2020, the continent achieved an impressive real GDP growth rate of approximately 4.9 per cent, a figure rivalled only by Asia.
Over 40 African countries maintained growth rates above 3 per cent, with seven countries exceeding 7 per cent.
Yet, despite this economic dynamism, poverty remains high, and meaningful, inclusive socio-economic development remains elusive.
While this GDP can signal growth potential, deeper challenges persist.
Africa＊s economies remain structurally undiversified: low-productivity agriculture still drives the bulk of employment on the continent, even as its share in GDP shrinks.
Fragmented markets and infrastructural deficits prevent the rise of manufacturing industries and stifle competitiveness.
Overreliance on a few primary commodities for exports locks countries into volatile and unfavourable global markets.
This weak competitive capacity, coupled with low levels of human development, has left many African nations unable to meet the Millennium Development Goals (MDGs), so no resilience has been built, and still far behind in delivering the Sustainable Development Goals (SDGs).
What has been missing?
The missing link lies in the underappreciated and complex relationship between trade, debt, and inclusive growth.
Trade, often seen as an opportunity for development, has historically marginalized Africa, locking it into a global system that benefits others at its expense.
Africa＊s economic marginalization in international trade prevents the continent from fully harnessing the benefits of its vast resources.
Many African nations are locked into trade arrangements where they export low-value raw materials and import high-value finished products.
This unfavourable trade balance erodes the continent＊s capacity to generate wealth, keeping economic surpluses low and debt burdens high.
In turn, debt distress becomes a symptom of this deeper problem, often mischaracterized as mere fiscal mismanagement or excessive borrowing.
Trade Marginalization and Debt Traps
Africa＊s debt challenges are rooted in its structural dependence on external markets and the global financial system.
The inability to move up global value chains has forced African nations to rely on commodity exports, which are vulnerable to price fluctuations and external shocks.
This dependence limits their ability to accumulate domestic capital and invest in high-value industries, such as manufacturing and services, which could drive more inclusive growth.
As Africa remains marginalized in global trade, it struggles to generate sufficient revenue to fund development and infrastructure projects.
This shortfall forces governments to resort to external borrowing, leading to a cycle of dependency that perpetuates debt distress.
This debt, far from being the result of reckless fiscal policy, is a direct consequence of Africa＊s limited control over its economic and financial flows, which are dictated by global trade systems that favour wealthier nations.
Impact on Inclusive Development and State Fragility
The persistent trade marginalization and resulting debt traps keep African nations in a state of economic fragility.
Unable to control the movement of wealth within and beyond their borders, these nations face significant challenges in mobilizing resources for social investment.
This undermines their capacity to deliver inclusive development〞economic growth that benefits all segments of society, especially marginalized groups like women and youth.
Moreover, without adequate control over financial flows, governments struggle to implement robust social protection systems, create employment opportunities, or provide access to essential services such as healthcare and education.
As a result, social inequalities deepen, perpetuating a cycle of poverty, unemployment, and state fragility.
Youth unemployment remains high, and challenges disproportionately affect vulnerable members of the population, including women and girls.
In many cases, women are denied equal economic opportunities and property rights.
This, in turn, undermines the potential for inclusive and sustainable development.
The Way Forward: Reclaiming Trade and Economic Sovereignty
To break free from this cycle, Africa must reclaim control over its economic and financial flows.
This involves more than just managing debt; it requires fundamentally reshaping the global trade relationships that have marginalized the continent for decades.
Effective institutions must be built to capture the value of trade and channel it toward domestic growth.
Africa＊s economies must shift from passive players in global markets to active participants that add value to their resources and control their financial destiny.
Reforming global trade systems is essential to ensuring that the value generated by African labour and resources stays within the continent.
By fostering domestic resource mobilization, creating transparent policy frameworks, and strengthening institutional capacity, Africa can de-risk investments, attract private capital, and stimulate industrialization.
These actions are critical to achieving inclusive growth, which benefits the wealthy elite and the broader population, particularly marginalized communities.
Moreover, institutional reforms must ensure that economic growth driven by fair international trade translates into equitable income distribution.
Income inequality, if left unchecked, undermines the very foundations of economic stability and inclusive development.
Therefore, institutions that foster a fairer distribution of wealth are crucial in reducing inequalities and breaking the cycle of poverty and fragility.
Conclusion
Africa＊s economic future depends on more than simply managing its debt; it requires reclaiming sovereignty over its financial resources and trade relationships.
Trade must evolve from a system that perpetuates inequality and marginalization into one that drives equality, inclusion and sustainability.
As the Special Adviser on Africa to the Secretary-General, I remain committed to working with the 51勛圖 Conference on Trade and Development to transform international trade into a force for equitable growth.
Together, we can build the Africa we want ＃ it is the Africa the world needs.