President Ruto Sustains the Push for a New Order in Global Finance

President William Ruto has been vocal in advocating for a new financial system and a shift in climate change financing. 

At the New Global Financial Pact Summit taking place in Paris, France, the Head of State has proposed two major reforms to the Bretton Woods Institutions and climate change. These join his other ideas for replacing the US dollar in intra-Africa trade, revamping the African Union, and modifying the United Nations Security Council.

The Summit is attended by 50 heads of state, as well as representatives from international organizations and civil society. It seeks to create a new system of finance to help vulnerable countries in their fight against poverty and climate change. Dr Ruto pointed out that poorer countries usually face higher interest rates than their wealthier counterparts, simply for being seen as riskier.

He is also pushing for the World Bank and the IMF to extend the ten-year repayment period of Kenya's debt to 50 years while pushing for fairness in the world's financial system.

“Let us agree that the money we are supposed to pay for the next 10 years as repayment of the debt, let us convert it into a new loan that is [for a duration] of 50 years with a 20-year grace period,” he said. 

President Ruto was speaking during a round table with French President Emmanuel Macron, IMF Managing Director Kristalina Georgieva, and World Bank Group President Ajay Banga. The World Bank is the most prominent external lender to Kenya, making up around 29.1% of the nation's foreign debt, and the IMF follows with 5%.

Ruto has been encouraging African countries to take part in trading with each other's currencies in order to break away from the U.S. dollar. He proposed that this could help to reduce the heavy dependence on the dollar, which has been increasing in strength, creating difficulty for poorer countries.