Guterres demands economic action at 39th AU Summit

United Nations Secretary-General António Guterres delivered a forceful call for sweeping economic reforms and urgent climate justice at the opening of the 39th African Union Summit over the weekend, warning that the global financial system remains “totally unjust” to developing nations and particularly to Africa.

Addressing heads of state and government, Guterres said developing countries are facing a staggering $4 trillion annual financing gap to meet the Sustainable Development Goals (SDGs).

At the same time, he noted, African countries are losing more money to debt servicing and illicit financial flows each year than they receive in foreign aid.

“It is simply unconscionable that Africa must contend with an economic and financial system that remains totally unjust,” Guterres said at a press briefing following his address.

Central to his economic message was a demand to triple the lending capacity of multilateral development banks (MDBs) to unlock affordable capital for developing economies. 

Guterres urged the international community to reduce borrowing costs, leverage more private finance, and provide stronger support to countries facing debt distress.

The UN chief stressed that the fight against money laundering, tax evasion and illicit financial flows must become a global priority.

“The international community must assume its full responsibilities,” he said, underscoring that Africa’s resources should no longer be siphoned off through opaque financial systems.

Guterres emphasized that African nations must benefit directly from their vast natural wealth, including critical minerals essential to the global energy transition.

“No more exploitation. No more plundering,” he declared. “The people of Africa must benefit from the resources of Africa.”

He urged the creation of fair and sustainable value chains that allow African countries to move beyond raw material exports and into local processing and manufacturing, in line with recommendations from the UN Panel on Critical Energy Transition Minerals.

With Africa holding 60% of the world’s best solar potential, Guterres said the continent can become a global clean energy powerhouse. Yet it currently receives only 2% of global clean energy investment, a stark imbalance he described as unacceptable.