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African countries have been advised by President John Dramani Mahama to increase domestic resource mobilization in order to lessen their dependency on outside financing and promote sustainable economic growth.
During the African Union (AU) Summit, Mahama spoke at a “Heads of State and Government Breakfast Dialogue” and emphasized the continent’s ability to bounce back from persistent difficulties. He predicted a growth rebound of 3.7% in 2024 and 4.3% in 2025.
“This optimistic outlook underscores the robust nature of our economies and the success of our policy interventions,” stated President Mahama, the African Union’s Champion for Financial Institutions. The dialogue was on the theme, “Africa at the Forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063.”
The event, which was hosted by President Mahama and organized in collaboration with the Alliance of African international Financing Institutions (AAMFI), also known as the African Club, brought together distinguished representatives from a number of international organizations.
Afreximbank President and AAMFI Chair Professor Benedict Oramah, World Trade Organization (WTO) Director General Dr. Ngozi Okonjo-Iweala, and African Union High Representative for Union and Peace Fund Financing Dr. Donald Kaberuku were among the notable attendees.
Despite the positive economic outlook, President Mahama cautioned of major challenges facing the continent. “While we see positive trends, we must acknowledge that our growth hasn’t consistently translated into improved per capita incomes. Structural transformation remains uneven, with many economies reliant on low-productivity sectors,” he noted.
He emphasised the urgency of addressing a challenging financing gap estimated at approximately $402 billion annually until 2030.
“This gap is more than just a figure; it signifies the unrealised aspirations of countless Africans whose hopes for a better future hinge on our capacity to invest wisely in crucial areas like infrastructure, education, technology, and health.”
In addition to financial constraints, Mahama pointed out other challenges, including climate issues, geopolitical tensions, and potential disruptions from diseases and pandemics. He stressed the importance of strategic investments in critical sectors and acknowledged the substantial financing gap needed to support these initiatives.
To bridge this gap, Mahama proposed a multifaceted strategy that encompasses strengthening domestic resource mobilization, improving tax administration, and mitigating illicit financial flows. He underscored the vital role of African multilateral financial institutions in supporting sustainable development and urged strengthening their capacity to advance Africa’s Agenda 2063.
“The establishment of institutions like the African Central Bank, African Investment Bank, African Monetary Fund, and the Pan African Stock Exchange is crucial for fostering necessary investments,” he stated.
“It is imperative for African countries to expedite the rollout of these institutions and leverage our collective strengths to fill the financing and investment voids.”
The president also envisioned a unified, prosperous, and peaceful Africa, affirming that such a vision is attainable if African nations effectively mobilise resources, reform financial systems, and invest in their populations.
Dr Ngozi Okonjo-Iweala, the WTO’s Director General, echoed President Mahama’s sentiment, urging African leaders to curtail borrowing and seek innovative methods for attracting and retaining investments.
“We need to capitalise on investments flowing into Africa and ensure their sustainability for our development,” she noted, suggesting strategies such as enhancing the value added to natural resources and utilising pension funds to raise long-term capital.
In order to further the dialogue’s commitment to attaining sustainable development throughout the continent, the event also included a high-level panel discussion centered on methods for mobilizing African money to accomplish the goals of Agenda 2063.
Source: Ghanatodayonline.com
