Mahama cautions that despite positive outlook Africa still faces significant challenges

President John Dramini Mahama has cautioned that despite the positive outlook, Africa faces significant challenges.

President Mahama said the continent was facing numerous challenges, including a substantial financing gap of approximately $402 billion annually until 2030.

“Notwithstanding these positive trends, we must confront the reality that our growth has not always been translated into significant improvements in per capita income. Structural transformation remains uneven with many economies still reliant on low productivity sectors,” he said.

“This financing gap is not merely a statistic,” he said. “It 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, he said.

President Mahama, who is the Champion of African Union Financial Institutions was delivering the keynote address at the Heads of State and Government breakfast dialogue held at the AU Commission headquarters in Addis Ababa, Ethiopia on Sunday.

He firther emphasised the need for African countries to mobilise domestic resources to reduce dependence on external financing and achieve sustainable growth.

He noted that Africa’s economic journey has demonstrated resilience despite numerous challenges, with projections indicating a recovery in growth to 3.7 per cent in 2024 and 4.03 per cent in 2025.

“This optimistic outlook highlights the inherent strength of our economies and the effectiveness of policy interventions,” President Mahama said.

It was a side event of the AU Summit, and was held on the theme, Africa at the forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063.

Hosted by President Mahama, it was held under the auspices of the Alliance of African Multilateral Financing Institutions, also called the African Club.

Present at the meeting were high level officials from various multilateral organizations within and outside the continent including the Chairperson of the Governing Council of the Alliance of African Multilateral Financing Institutions ( AAMFI), and President and Chairman of the Board of Directors of Afreximbank, Professor Benedict Oramah, the Director General of the World Trade Organization (WTO), Dr Ngozi Okonjo Iweala.

Also present were the African Union High Representative for Financing of the Union and the Peace Fund, Dr Donald Kaberuku, the Commissioner for Economic Development, Trade, Tourism, Industry and Minerals at the AU, Ambassador Muchanga, among others.

Challenges

 

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