Debate: Formal sittin - Address by William Ruto, President of the Republic of Kenya
Date: TUESDAY, 21 NOVEMBER 2023
Speaker: William Ruto
Language: EN

This eminent institution plays a critical role in shaping policies and decisions that affect not only Europe, but also its partners around the world, including Kenya. Let me express my sincere gratitude for your support in the imminent conclusion of the Economic Partnership Agreement between the European Union and Kenya. This is a major leap forward in our trade and economic relationship. The EU remains one of our most important trading allies, accounting for more than a fifth of Kenya’s global exports. I must emphasise the impact of this agreement extends far beyond trade statistics. It opens a world of opportunities, facilitating not only the exchange of goods but also ideas and innovations. It is a bridge between people and cultures and continents. These are difficult times – there is no doubt. We find ourselves amidst a formidable storm of challenges, each not only complex in its own way, but also deeply interconnected. New and renewed international conflict and wars as witnessed most recently in Ukraine, Israel and Gaza, the Sahel, Sudan, Somalia, the DRC, creating widespread human suffering and deepening divisions in a period where global collaboration and unity are of paramount importance. Democracy is under pressure in many parts of the world and multilateral institutions, once the hope for international solidarity, are struggling to maintain broad-based acceptance, relevance and effectiveness. At the same time, progress towards the Sustainable Development Goals is unravelling. Rising interest rates and looming debt distress make it much harder for countries to address their own socioeconomic challenges. High cost of living, fiscal strain and migration are weakening international solidarity. And, most existentially, the world, as the UN Secretary-General reminded us recently, is literally on fire – ‘the era of global boiling’, it used to be ‘global warming’ – emphasising the severe and escalating impact of climate change. The escalating severity of climate change is particularly acute and poignant in Africa, a continent that, despite its minimal contribution to global emissions, finds itself at the forefront of environmental vulnerability. In Africa with less buffers to address climate change challenges, we feel the impact more directly and more acutely. Consider, for example, the significant influence of high inflation rates on voting behaviours in your region – and I am told you are going to election shortly. Now imagine the impact of a year-on-year food price inflation exceeding 10% in sub-Saharan African countries, where food makes up a third of household expenses. These challenges are not isolated. They are interconnected layers of a complex historical, economic, and environmental narrative that the continent endures. Africa still carries the scars of colonialism, which remain visible in the economic and institutional dependencies that continue to hinder progress and perpetuate social and political fragility. And acknowledging these issues is important, but focusing solely on them risks obscuring the broader horizon and opportunity. The adversarial North versus South dynamic has not served us well, denying us the opportunity to leverage each other’s strengths. Similarly, the East versus West divide is untenable and counterproductive, working against the interests of us all. Climate change has introduced a new dimension into this complex equation. While it poses an existential threat, climate change has also emerged as a levelling force, equalising us all in the face of a shared global challenge, transcending all divides: North-South, East-West, developed and developing. Collectively, therefore, we have the means to make progress. Advanced technology, robust financial systems and dynamic markets, alongside pioneering advantages in various sectors, are key assets of the Global North. Historically, the Global South has played a vital role in supporting the North’s industrialisation by providing raw materials and markets. Now, as we navigate a new era of global interdependence, this needs to evolve into a reciprocal relationship – a shift towards a more balanced and equitable global partnership with the deliberate transfer of technologies and intentional flow of capital to the Global South. And this also means a seat at the table to look for solutions that work for all of us, in a spirit of cooperation and mutual understanding. Thus, it is essential to reassess long-standing assumptions that sometimes are not true, rethink perceived barriers, and question default decisions. We need to be bold and strategic, and also take the decisive step towards the structural shift required to fulfil the 2030 agenda for sustainable development and keep global warming at 1.5°C. This was precisely the premise of the inaugural Africa Climate Summit that I hosted in Nairobi in September. The summit provided a platform not just to discuss the challenges we face, but to view them through the lens of solutions and opportunities. Therefore, I am hopeful because there exists a real opportunity. An opportunity to reach sustainable, equitable prosperity for all of humanity. An opportunity for the European Union to accelerate its race to net zero, decarbonise its industry and build the economy of the future. And an opportunity for Africa to provide security and stability for all Africans while taking its rightful place in the 21st-century economy. The Africa Climate Summit culminated in the Nairobi Declaration, which sets out the vision and a pathway for Africa to be a vital part of the global solution to the existential climate change challenge that we all face. The declaration captures the consensus of the African government leaders for climate positive growth. We have the world’s biggest untapped renewable energy potential, the youngest and fastest growing workforce and human capital, and relevant natural resources and assets. 60%, for example, of the world’s best solar potential is in Africa. As well as 60% of the remaining unused arable land in the world. These assets create an inherent ability for Africa to produce green-from-the-start, cost-competitive products and services, and to provide some of the highest-quality carbon removal services anywhere in the world. When it comes to green economy, our reality is markedly differently from that of Europe. Over 600 million Africans are deprived of access to energy, a fundamental prerequisite for dignified living and the provision of basic yet vital services like health and education. Adding to this is the fact that almost 1 billion Africans lack access to clean cooking. While the global narrative often emphasises energy transition, for most of Africa, it is about energy growth, expansion and access. It follows that how Africa takes on this challenge will matter a great deal, both regionally and globally. It will matter whether Africa can transform into a green powerhouse that helps the world decarbonise. Equally important is the focus on providing educational opportunities for the youth of Africa. By investing in the education and skills development of our young population, Africa can create a vibrant, self-sustaining economy that offers its youth compelling reasons to build their future at home in Africa. This approach, underpinned by structured migration, can alleviate the pressure on regions like Europe, which increasingly rely on economic migrants to maintain their standard of living. Adopting this agenda is not just a choice but an necessity. The alternative, which neglects Africa’s development and industrialisation and fails to invest in the young generation, is not, Members, a viable option. Allow me to illustrate with a few tangible examples of how our strategies and interests converge. In Kenya, for example, we already have a 92% green grid. Our challenge is not how to get that to 100%, because we will, rather our challenge is how to grow it. From its current size of just 3GW – which is, I am told, less than 25% of the Paris metropolitan area for a country with five times as many people – we want to grow our grid to 100GW by 2050 so that it can power green industrialisation and create prosperity through green growth. In June this year, this very Parliament adopted legislation to create the enabling environment for the domestic production of 10 million tonnes of green hydrogen by 2030 and the import of a similar amount in order to green EU industry. African countries are recognised as potential producers of this green hydrogen and we welcome the collaboration. Kenya, for example, is developing a plant to produce green fertiliser, which will reduce our import dependency, and we have an opportunity to export green hydrogen from our geothermal resources to Europe. Another EU-relevant example is bauxite. Africa currently mines 25% of the world’s bauxite, yet exports almost all of it as raw material. If Africa’s renewable energy potential were deployed to smelt currently mined bauxite into aluminium, we could save millions of tons of CO2 equivalent and generate hundreds of thousands of jobs in our continent. And aluminium is just one example of many. Green steel is another, not to mention Africa’s significant global deposits of critical minerals or our potential to produce sustainable fuels. By tapping into these resources and employing green technologies, Africa can contribute significantly to global decarbonisation efforts while boosting its own economic development, creating a win-win scenario for both the continent and the world. While Africa, as a source of raw materials and market for finished products, contributed to Europe’s industrialisation, there has been tremendous growth in technology and capital. It is, ladies and gentlemen, I request, the time for Europe to deploy these technologies and capital to now unlock the huge green energy resources, drive green industrialisation using the natural resource endowments in the continent, global green products and services, create jobs and, at the same time, decarbonise Europe and global growth. Indeed, I could devote much more time to unfolding the vast richness of our continent. Yet the path to realising Africa’s full potential is paved with significant challenges. Let us consider some sobering facts: in the last two decades, global investments in renewable energy soared to an impressive USD 3 trillion, but only a fraction of this – USD 60 billion, or just 2% – found its way to Africa, despite our enormous potential and urgent energy needs. A critical obstacle in this journey is the prohibitive high cost of capital. Private investors are demanding high premiums, in great part based on perceived risks. Consequently, we are burdened with borrowing costs at least five times higher than those of advanced economies, creating a vicious cycle of debt. This disparity not only hinders our progress, but also makes any meaningful development financing unattainable. This situation is indefensible, both morally and economically. And changing it is possible, but it requires our collective will and resourcefulness. Above all, it requires new forms of cooperation that are based on mutually beneficial strategies. Europe has been an ally and a partner to Africa for many years, encompassing a broad spectrum of initiatives that are very important for our continent, from economic cooperation that fosters trade and investment, to the vital steps taken in energy and climate change through initiatives like the Africa-EU Energy Partnership, and we are making very steady progress in that direction. Our collective efforts in peace and security, notably supported by the African Peace Facility, have been influential in promoting stability across the continent. In education and research, programmes like Erasmus+ have opened new horizons for our youth, while joint efforts in health have underscored the importance of robust health systems. We are working together on migration management, focusing on issues such as combating human trafficking and addressing the root cause of irregular migration. And initiatives such as the Global Gateway have the possibility to open new avenues for cooperation. But we can and must do more. Above all, we must remain alert to the risk of conflict, as tensions and disagreements can escalate rapidly with far-reaching and costly consequences. The conflict in the heart of Europe, something unimaginable in the 21st century, underscores this reality. In the face of such challenges, the role of Kenya as a stable democracy and an anchor state for peace and security in the region becomes increasingly significant. As the African Union Mission in Somalia is concluding, Kenya as a frontline state will continue our support and collaboration with the government in Somalia to fight against terrorism. This ongoing commitment is crucial for maintaining regional stability, and we count on the EU bilateral support for our efforts in this regard. In another part of the world, the situation in Haiti highlights the global nature of security challenges. Grounded in United Nations resolutions, the Multinational Security Support Mission will need some 5000 men and women to address the challenge posed by armed gangs, estimated to be around 9000. Currently, about eight countries, including Kenya, are willing to contribute their forces to Haiti, but there is a clear need for assurance of international support. The support from the EU will be instrumental in bolstering the initiative, providing the necessary resources, including legitimacy. Madam President, Members of this great august House, fostering long-term peace and stability goes hand in hand with building sustainable economic foundations. And Africa is mapping out the road for green industrialisation and prosperity, so that it can play its rightful role in shaping a better future for all. In this endeavour, the partnership between Europe and Africa must embody a reciprocal relationship grounded in shared objectives and cooperative effort. This synergy has the power to drive transformative results for both continents. Concrete, actionable steps are the key to realising these mutually beneficial vision. Firstly, Africa’s journey to become a green industrial powerhouse needs the right type and amount of capital, especially in renewable energy and infrastructure. Such investment could catapult Africa to a future where energy access is universal by 2030, simultaneously slashing emissions from energy generation in Africa by 80%. Secondly, there is unnecessary complement to capital: market access. In fact, one of the biggest contributions that the EU can make to both addressing poverty in Africa and achieving global climate goals is through its demand for green products and services, including for carbon credits. Africa wants to compete. Crucially, we are not asking for further exemptions or a lower bar, but with high requirements on quality and integrity. Thirdly, the EU has a golden opportunity to leverage high-quality African carbon credits that conserve and expand natural carbon sinks, reduce emissions and remove atmospheric carbon. These days, not a week goes by without an exposé about bad carbon credits. And while issues exist in the market, it is important to not lose sight of one of the core drivers: at the current price of 50 cents to a few dollars per tonne in the voluntary market, it is simply impossible to generate quality credits. In the Nairobi Declaration, we committed to leaning forward in increasing the bar on quality and integrity on carbon and other relevant effects of this project. It will be that much easier to do so with a prospect of market access. In Kenya, the draft Carbon Markets Regulation is in the final stage of finalisation, and we believe that, using these carbon credit instruments, we can create resources to not only expand our growth but also decarbonise global growth. Fourthly, aligning European concessional and multilateral capital with Africa’s climate agenda is also an economic idea. It is about phasing down climate incompatible funding to shift them towards climate action, unlock much more concessional finance and lower risks. Here, I invite the European Investment Bank to play a bigger role in Kenya and on the continent with its expertise and resources. And finally, African economies are constrained by lack of appropriate and sufficient finance and investment. As African countries, we pay five times as much as much for our debt as we would pay if the multilateral development banks were appropriately capitalised. Those seeking investment for private projects face high costs of capital and unhelpful short tenures, driven by both real and perceived risk factors. We face a chokehold on a vicious cycle: as countries, our ability to invest consistently and strategically in basic infrastructure, social services and skills development is severely hampered. And lack of that investment contributes to the high risk premiums, and makes it harder for private projects to become viable and attractive. There is a very strong list of proposals to reform the international financial architecture. We support this and more and we are in good company. For example, the implementation of the Capital Adequacy Framework review of the MDBs has broad-based support across G7 and G20. Yet our path to action is a bit too slow. I call on all of us to accelerate and expand these measures, such as with the tax working group we are launching with France at the COP28 next month. Lastly, Europe’s experience in workforce development and reskilling offers invaluable insights. By learning from Europe’s successful models in education and vocational training, we can build capacity and equip our youth with the competencies required in an evolving global economy. Members, Europe is a significant investor and trade partner in Africa – a relationship that has been fruitful over the years. Our collaborative efforts have helped generate millions of jobs and enhance livelihoods across the continent. This partnership is not only a cornerstone of our past and present, but it is also crucial for our future. I extend a warm invitation to European companies, institutions and organisations to explore the many opportunities our continent has to offer. Join us in a collaborative endeavour to unearth and develop solutions that leverage our respective strengths, drive innovation and benefit not only Africa, but also contribute to global progress. Because our story does not stop with our two continents. This is a global story. The demands of our time are great and full of uncertainty. Addressing this effectively hinges on a robust commitment to multilateralism and international cooperation. However, it is increasingly clear that the institutions and structures established in the 20th century are not fit for purpose anymore. We must ensure they are equipped to address contemporary challenges and pave the way for inclusion, equality and prosperity. This calls for a fundamental redefinition of international cooperation. We must move beyond arrangements that perpetuate cycles of indebtedness and dependence. Our aim should be to bring about real additional financing that does not merely escalate debt burdens or facilitate the extraction of profits. Cooperation that does not lock in developing countries in fossil fuel dependency, but allows them to advance alongside the rest of the world in the transition to sustainable energy. Genuine partnerships that prioritise people and their well-being on a liveable planet. In today’s interconnected world, where the fortunes of all nations are tightly woven together, a new era of cooperation and collective action is necessary for a prosperous and peaceful world. In the face of threats that transcend borders and oceans, it is essential to adopt a clear-sighted and unified approach to confront climate change, combat poverty, and tackle conflict. Madam President, honourable Members, the annals of history are replete with instances where collective action has achieved what no single nation could accomplish alone. We are acutely aware that our decisions and actions will significantly shape the 21st century. Years from now, future generations will reflect on this era, scrutinising the choices we make in this moment. Let it be said that we are visionary, not just preoccupied with the present, but deeply invested in the future. Let our legacy be one of foresight, collaboration and solidarity. Let us be guided by a deep commitment to ensuring a prosperous, equitable and sustainable world for those who will follow our footsteps.