ADDIS ABABA—Ethiopia’s Permanent Representative to the United Nations, Ambassador Tesfaye Yilma, has emphasized the necessity of reforming International Financial Institutions (IFIs) to enable developing countries to achieve the Sustainable Development Goals (SDGs). Ambassador Tesfaye spoke with ENA in Addis Ababa, where he is participating in the Preparatory Committee for the Fourth International Conference on Financing for Development (FfD4).
According to Ethiopian News Agency, inclusive, responsive, and accessible multilateral financial institutions are crucial for giving developing countries a greater voice in decision-making. He highlighted that the SDGs, established in 2015, require financial institutions to undergo their own reforms to support the goals effectively. He warned that without these reforms, especially in finance, developing countries would not meet the SDG targets.
“Unless we change certain things in terms of finance, we are definitely going to miss the SDGs targets. So before it’s too late, the global community has to show some solidarity, learn together, reform the International Financial Institutions (IFIs), and mobilize the necessary finance to meet the SDGs targets,” he stated.
The global financial institutions’ reform has been a significant agenda at the UN, particularly for the developing world. Ethiopia has integrated the SDGs into its national development plan, allocating over 60 percent of the national budget to sectors aligned with these goals. Ambassador Tesfaye noted that Ethiopia’s development work is guided by the SDGs, which reflect in the national budget structure, targeting education, health, energy, infrastructure, and climate action.
Despite significant financial constraints, Ethiopia continues to push for global financial support from the IFIs, bilateral donors, and the international community. The United Nations has identified global financial system reform as a key priority, with UN Secretary-General António Guterres proposing a $500 billion annual stimulus package to accelerate SDG progress. Ambassador Tesfaye believes this financial mobilization is achievable and essential for meeting the SDG targets.
He also stressed the importance of diversifying funding avenues, including private finance, Official Development Assistance (ODA), multilateral financial institutions, and sovereign wealth funds. “There is no ideological commitment towards financing as far as we are concerned. We access capital wherever it’s available,” he added.