Rwanda’s president, Paul Kagame has warned that the debt crisis in developing countries is weighing down the Sustainable Development Goals (SDGs) push.
In his address to the 78th United Nations General Assembly in New York, Kagame noted that the primary cause of the debt crisis is high interest rates in developed economies in reaction to global inflation.
He also discussed the lack of progress toward achieving SDGs, reducing conflict around the globe, and finding ways to boost international cooperation.
Kagame commended the Secretary-General’s focus on the issue but emphasized that slow progress towards achieving SDGs would worsen economic disparities between countries.
“This year’s SDGs summit has once again raised the alarm about the slow pace of SGD implementation. Developing countries are constrained by higher costs of borrowing. This is causing economic disparities to widen and slowing down our collective progress towards the Sustainable Development Goals,” Kagame said.
This comes just a day after the Ministry of Finance revealed that Uganda’s public debt had now hit the Shs87 trillion mark, with the largest proportion coming from external lenders, including the World Bank.
The ministry attributes the increase in external debt to increased disbursements for budget support to fund some critical projects, while the increase in domestic debt was primarily due to issuances to finance budgetary expenditure and redemptions.