The United Nations has reported that 32 countries, including Rwanda, possess wealth but lack the capacity to fully exploit it, and therefore should be facilitated with easier access to investment loans to develop these resources.
This was discussed in a forum held in Turkmenistan, Central Asia, where attention was drawn to issues affecting 32 developing countries that are landlocked.
The UN list indicates that Rwanda is one of those countries that continue on a development journey that is described as challenging.
UN Secretary-General António Guterres said: “When countries are landlocked, we see a complex network of problems.”
Among the 32 countries, 16 are from the African continent. Guterres noted that although these countries have abundant resources, they face various challenges.
He stated: “Debt levels continue to exceed the capacity of these countries. One-third of developing landlocked countries are affected by conflict and security issues. Although they account for 7% of the world’s population, they only contribute 1% to the global economy.”
He added: “These countries have abundant resources, including natural wealth and a sufficient workforce, but these resources remain unexploited because they lack capital to process and market them. Today, limited access to technology is also a major issue. People in these countries, especially women and rural populations, are not yet using it.”
The UN chief emphasized that the global community must support these countries to overcome their developmental isolation.
He said: “Today’s discussions have shown that these developing landlocked countries do not need charity, they need easier access to capital just like others. The way lending institutions operate must be reformed so they can assist those who need help the most.”
“Many countries are overwhelmed by debt, others lack investment capital, they pay high interest on loans but receive very little aid. We need to ensure they are offered low-interest loans and even debt forgiveness. Financial institutions must abandon practices from 80 years ago and adapt to the current times.”
The United Nations Conference on Trade and Development (UNCTAD) revealed that each year, the African continent loses aid equivalent to $88.6 billion, about 3% of its total GDP.
Between 2000 and 2015, the continent lost $836 billion in aid, which exceeds the total loans Africa received in 2018.
In 2023, Africa received $75 billion in aid but lost $90 billion, creating a financial gap of around $200 billion each year. Experts say this significantly hinders development in these countries.
They emphasized that the top priority should being accountable of the use of aid and loans, and combating the embezzlement of funds intended to enhance people’s living standards.
However, Rwanda is among the countries demonstrating that all funds received are used for their intended purpose, which continues to build trust from the international community.
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