{"id":75283,"date":"2026-05-07T08:25:27","date_gmt":"2026-05-07T06:25:27","guid":{"rendered":"https:\/\/lesvolcansnews.net\/?p=75283"},"modified":"2026-05-07T08:25:27","modified_gmt":"2026-05-07T06:25:27","slug":"opinion-why-the-global-financial-system-needs-an-overhaul","status":"publish","type":"post","link":"https:\/\/lesvolcansnews.net\/?p=75283","title":{"rendered":"Opinion : Why the Global Financial System Needs an Overhaul"},"content":{"rendered":"

 <\/p>\n

In global finance, perception masks reality and creates unnecessary costs or undeserved disadvantage. For Africa, perception has become a penalty in a continent where investment opportunities are abundant but are underexploited due to negative perceptions.<\/strong><\/p>\n

In recent years, Africa has proven its worth and is showing signs of a takeoff, with several African economies growing at rates that outpace most of the advanced economies. Yet access to international finance is still constrained by unrealistic perceptions of virtually non-existent risk. When African countries turn to international markets, they are charged some of the highest borrowing costs due to perceived risk premia. Making it worse is the fact that despite the diversity in the continent, nearly all countries are painted with the same brush, without clear distinction of where the risks may be high and where the risks are low. Africa is not uniquely risky; it is systematically mispriced, and the implications are profound.<\/p>\n

Because of the constrained access to finance, the continent faces an annual development financing gap estimated at more than 400 billion dollars<\/a>, according to the African Development Bank. This is happening in a world where global capital is abundant, with institutional investors managing assets that run into tens of trillions. Capital and opportunity exist. In Africa, what is broken is the mechanism that connects the two. This disconnect is rooted in how Africa is assessed. As already observed, the continent is too often treated as a single exposure rather than a mosaic of 54 distinct economies. A fiscal shock in one economy triggers a reassessment across a region or regions. A downgrade in one jurisdiction raises borrowing costs in countries with no direct linkage. Risk is pooled and opportunity is discounted. The result is a structural premium on African opportunity, even in countries with documented and demonstrable track records.<\/p>\n

In practical terms, this premium distorts decision-making at every level. Governments are pushed towards short-term, high-cost borrowing instead of long-term investment. Bankable projects stall or repayment of borrowed funds become unbearable because financing terms cannot be sustained. Private capital, which should be driving growth in roads, transport, and energy infrastructure, remains on the sidelines or demands returns that render projects unviable. In Kenya, the paradox is clear. The country has built one of the most advanced digital ecosystems in Africa, expanded infrastructure, and nurtured a vibrant private sector. It has also faithfully serviced its debt even in times of global crises. Yet, like many of its peers, it continues to confront elevated external financing costs that slow the pace of further transformation.<\/p>\n

Across the continent, the effects accumulate. According to the United Nations, several African countries now allocate more resources to debt servicing<\/a> than to health. This is not just a fiscal imbalance. It is a development setback that compounds inequality and delays progress. Left unaddressed, the system becomes self-reinforcing. High-cost capital limits investment; limited investment suppresses growth, while lower growth feeds negative perceptions and results in low revenue collections that fuel the need for more borrowing at high cost. Breaking this cycle does not require an invention but a correction.<\/p>\n

First, risk assessment must become more country-specific and be data-driven. The reality on the ground should drive the outcomes. Aggregated models that pool Africa into a single risk category are analytically weak and economically damaging. Investors and rating agencies must rely on granular data and engage more directly with African institutions to avoid potentially exaggerated risk and negative perceptions. Second, public finance must be deployed with greater strategic intent, and private sector capacity must be leveraged. Instruments such as guarantees, first loss of capital, and blended finance are designed to crowd in private investment. Yet, they remain underutilized relative to the scale of the challenge. Multilateral development banks must evolve from lenders to catalysts, using their balance sheets to unlock rather than substitute private capital.<\/p>\n

Third, representation matters. The architecture of global finance continues to reflect an earlier era. African economies have limited influence over the frameworks that shape capital flows, debt restructuring, and risk allocation. Without a stronger voice, reforms will remain partial and misaligned. Fourth, the continent must match financial reform with the execution of readiness. Capital does not move potential alone; it moves structure. Building a robust pipeline of investment-ready projects, supported by strong institutions and transparent frameworks, is essential to converting opportunities into real investments. These are the practical steps that align incentives, correct distortions, and unlock capital.<\/p>\n

The Africa Forward Summit<\/a> in Nairobi offers, therefore, a moment to move beyond consensus into commitment. Bringing together African and French leadership alongside global diplomatic and financial actors, it provides a platform to secure specific actions that reduce the cost of capital and expand access to long-term financing. Africa\u2019s infrastructure gaps, energy transition, and demographic growth are not risks being managed at a distance. They are opportunities that will shape global growth in the decades ahead. The question is not whether Africa is ready, but whether the financial system is prepared to price it accurately.<\/p>\n

Until it does, the continent will continue to be constrained not by a lack of capital, but by the cost of accessing it. And that is a distortion the global economy can no longer afford.<\/p>\n

The author is the director general of the Public Debt Management Office, Kenya National Treasury.<\/strong><\/p>\n

About the Africa Forward Summit (AFS) 2026<\/strong><\/p>\n

The Africa Forward Summit<\/a> is a joint Africa\u2013France initiative, co-convened by the Republic of Kenya and the Republic of France, with African Union endorsement. It takes place in Nairobi on 11\u201312 May 2026 and represents a structural shift in how Africa and France engage \u2014from a donor-recipient dynamic to a partnership grounded in innovation, parity, and shared implementation. It prioritizes African agency and serves as a catalyst for sustainable development and inclusive prosperity. #AfricaForward<\/strong><\/p>\n

Raphael Otieno<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

  In global finance, perception masks reality and creates unnecessary costs or undeserved disadvantage. For Africa, perception has become a penalty in a continent where investment opportunities are abundant but<\/p>\n","protected":false},"author":13,"featured_media":75280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-75283","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economie"],"yoast_head":"\nOpinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lesvolcansnews.net\/?p=75283\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS\" \/>\n<meta property=\"og:description\" content=\"  In global finance, perception masks reality and creates unnecessary costs or undeserved disadvantage. For Africa, perception has become a penalty in a continent where investment opportunities are abundant but\" \/>\n<meta property=\"og:url\" content=\"https:\/\/lesvolcansnews.net\/?p=75283\" \/>\n<meta property=\"og:site_name\" content=\"LES VOLCANS NEWS\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-07T06:25:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gabriel kashugushu\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gabriel kashugushu\" \/>\n\t<meta name=\"twitter:label2\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283\"},\"author\":{\"name\":\"Gabriel kashugushu\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/#\\\/schema\\\/person\\\/3ef8b35f83dd9252356add99105d57b0\"},\"headline\":\"Opinion : Why the Global Financial System Needs an Overhaul\",\"datePublished\":\"2026-05-07T06:25:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283\"},\"wordCount\":969,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lesvolcansnews.net\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/IMG-20260507-WA0026.jpg\",\"articleSection\":[\"\u00c9CONOMIE\"],\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283\",\"url\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283\",\"name\":\"Opinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/lesvolcansnews.net\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/IMG-20260507-WA0026.jpg\",\"datePublished\":\"2026-05-07T06:25:27+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/#\\\/schema\\\/person\\\/3ef8b35f83dd9252356add99105d57b0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#breadcrumb\"},\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#primaryimage\",\"url\":\"https:\\\/\\\/lesvolcansnews.net\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/IMG-20260507-WA0026.jpg\",\"contentUrl\":\"https:\\\/\\\/lesvolcansnews.net\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/IMG-20260507-WA0026.jpg\",\"width\":600,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/?p=75283#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/lesvolcansnews.net\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Opinion : Why the Global Financial System Needs an Overhaul\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/#website\",\"url\":\"https:\\\/\\\/lesvolcansnews.net\\\/\",\"name\":\"LES VOLCANS NEWS\",\"description\":\"L'INFORMATION C'EST NOUS\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/lesvolcansnews.net\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-FR\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/lesvolcansnews.net\\\/#\\\/schema\\\/person\\\/3ef8b35f83dd9252356add99105d57b0\",\"name\":\"Gabriel kashugushu\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g\",\"caption\":\"Gabriel kashugushu\"},\"url\":\"https:\\\/\\\/lesvolcansnews.net\\\/?author=13\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Opinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/lesvolcansnews.net\/?p=75283","og_locale":"fr_FR","og_type":"article","og_title":"Opinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS","og_description":"  In global finance, perception masks reality and creates unnecessary costs or undeserved disadvantage. For Africa, perception has become a penalty in a continent where investment opportunities are abundant but","og_url":"https:\/\/lesvolcansnews.net\/?p=75283","og_site_name":"LES VOLCANS NEWS","article_published_time":"2026-05-07T06:25:27+00:00","og_image":[{"width":600,"height":600,"url":"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg","type":"image\/jpeg"}],"author":"Gabriel kashugushu","twitter_card":"summary_large_image","twitter_misc":{"\u00c9crit par":"Gabriel kashugushu","Dur\u00e9e de lecture estim\u00e9e":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/lesvolcansnews.net\/?p=75283#article","isPartOf":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283"},"author":{"name":"Gabriel kashugushu","@id":"https:\/\/lesvolcansnews.net\/#\/schema\/person\/3ef8b35f83dd9252356add99105d57b0"},"headline":"Opinion : Why the Global Financial System Needs an Overhaul","datePublished":"2026-05-07T06:25:27+00:00","mainEntityOfPage":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283"},"wordCount":969,"commentCount":0,"image":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283#primaryimage"},"thumbnailUrl":"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg","articleSection":["\u00c9CONOMIE"],"inLanguage":"fr-FR","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/lesvolcansnews.net\/?p=75283#respond"]}]},{"@type":"WebPage","@id":"https:\/\/lesvolcansnews.net\/?p=75283","url":"https:\/\/lesvolcansnews.net\/?p=75283","name":"Opinion : Why the Global Financial System Needs an Overhaul - LES VOLCANS NEWS","isPartOf":{"@id":"https:\/\/lesvolcansnews.net\/#website"},"primaryImageOfPage":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283#primaryimage"},"image":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283#primaryimage"},"thumbnailUrl":"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg","datePublished":"2026-05-07T06:25:27+00:00","author":{"@id":"https:\/\/lesvolcansnews.net\/#\/schema\/person\/3ef8b35f83dd9252356add99105d57b0"},"breadcrumb":{"@id":"https:\/\/lesvolcansnews.net\/?p=75283#breadcrumb"},"inLanguage":"fr-FR","potentialAction":[{"@type":"ReadAction","target":["https:\/\/lesvolcansnews.net\/?p=75283"]}]},{"@type":"ImageObject","inLanguage":"fr-FR","@id":"https:\/\/lesvolcansnews.net\/?p=75283#primaryimage","url":"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg","contentUrl":"https:\/\/lesvolcansnews.net\/wp-content\/uploads\/2026\/05\/IMG-20260507-WA0026.jpg","width":600,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/lesvolcansnews.net\/?p=75283#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Accueil","item":"https:\/\/lesvolcansnews.net\/"},{"@type":"ListItem","position":2,"name":"Opinion : Why the Global Financial System Needs an Overhaul"}]},{"@type":"WebSite","@id":"https:\/\/lesvolcansnews.net\/#website","url":"https:\/\/lesvolcansnews.net\/","name":"LES VOLCANS NEWS","description":"L'INFORMATION C'EST NOUS","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/lesvolcansnews.net\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"fr-FR"},{"@type":"Person","@id":"https:\/\/lesvolcansnews.net\/#\/schema\/person\/3ef8b35f83dd9252356add99105d57b0","name":"Gabriel kashugushu","image":{"@type":"ImageObject","inLanguage":"fr-FR","@id":"https:\/\/secure.gravatar.com\/avatar\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b1efe389b883822b0c85514277ea1248a50adf6d07a987a1d898d45520f89698?s=96&d=mm&r=g","caption":"Gabriel kashugushu"},"url":"https:\/\/lesvolcansnews.net\/?author=13"}]}},"_links":{"self":[{"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/posts\/75283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=75283"}],"version-history":[{"count":1,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/posts\/75283\/revisions"}],"predecessor-version":[{"id":75284,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/posts\/75283\/revisions\/75284"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=\/wp\/v2\/media\/75280"}],"wp:attachment":[{"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=75283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=75283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lesvolcansnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=75283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}