President Mahama urges African self-reliance in financing development

President John Dramani Mahama has emphasized the need for African nations to mobilize domestic resources to reduce reliance on external financing and achieve sustainable economic growth.

Delivering the keynote address at the Heads of State and Government breakfast dialogue at the African Union (AU) Commission headquarters in Addis Ababa, Ethiopia, President Mahama highlighted Africa’s economic resilience. He noted that growth projections indicate a recovery to 3.7% in 2024 and 4.03% in 2025, reflecting the effectiveness of policy interventions.

“This optimistic outlook highlights the inherent strength of our economies and the effectiveness of policy interventions,” he stated.

The event, held as a side meeting of the AU Summit, was hosted under the auspices of the Alliance of African Multilateral Financing Institutions, also known as the African Club. It brought together key officials, including Afreximbank President Professor Benedict Oramah, WTO Director-General Dr. Ngozi Okonjo-Iweala, and AU High Representative for Financing, Dr. Donald Kaberuka.

Despite Africa’s economic potential, President Mahama cautioned that structural transformation remains uneven, with many economies still reliant on low-productivity sectors.

“Notwithstanding these positive trends, we must confront the reality that our growth has not always been translated into significant improvements in per capita income,” he warned.

He highlighted a significant financing gap of $402 billion annually until 2030, which he described as more than just a statistic.

“This financing gap represents the unrealized potential of millions of Africans whose dream for a better life depends on our ability to invest wisely in infrastructure, education, technology, and health.”

Beyond financial constraints, he noted additional challenges, including climate change, geopolitical tensions, global health crises, and multilateral trade imbalances, which could disrupt Africa’s progress toward sustainable development.

Bridging Africa’s Financing Gap

To address this gap, President Mahama proposed a multifaceted strategy, including:

• Enhancing domestic resource mobilization
• Improving tax administration
• Combating illicit financial flows

He also stressed the need to strengthen African multilateral financial institutions to drive sustainable development. He urged African nations to accelerate the establishment of key AU financial institutions, such as the African Central Bank, African Investment Bank, African Monetary Fund, and Pan-African Stock Exchange.

“It is our responsibility to strengthen our African multilateral financial institutions to effectively contribute to the transformation and realization of our Agenda 2063,” he stated.

Addressing the meeting, WTO Director-General Dr. Ngozi Okonjo-Iweala urged African leaders to reduce excessive borrowing and instead focus on innovative ways to attract and sustain investments.

“We must take advantage of investment that comes to Africa and be able to sustain them for our own development,” she advised.

She suggested Africa could raise funds through value addition to natural resources, utilizing pension funds for patient capital, and innovative carbon pricing mechanisms.

The dialogue concluded with a high-level panel discussion on “Mobilizing African Investment and Financing for Implementing Agenda 2063,” where experts shared strategies to unlock Africa’s financial potential and accelerate the continent’s long-term development goals.

The post President Mahama urges African self-reliance in financing development first appeared on 3News.

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