President John Mahama has stressed the need for African nations to harness domestic resources to reduce dependence on external financing and foster sustainable growth.
Delivering the keynote address at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Ethiopia on Sunday, February 16, he highlighted Africa’s economic resilience despite various challenges.
As the Champion on African Union Financial Institutions, President Mahama hosted the event, which was a side meeting of the AU Summit. The dialogue, themed Africa at the Forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063, was held under the auspices of the Alliance of African Multilateral Financing Institutions, also known as the African Club.
Despite the promising outlook, President Mahama warned that the continent still grapples with significant challenges that need to be overcome for sustained growth and stability.
“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.
President Mahama highlighted the numerous challenges facing the continent, including a significant financing gap of around $402 billion annually until 2030.
He emphasized that this gap is more than just a statistic—it reflects the untapped potential of millions of Africans whose aspirations for a better life hinge on strategic investments in infrastructure, education, technology, and healthcare.
Beyond financial challenges, President Mahama pointed out that the continent also faces climate crises, geopolitical tensions, widening gaps in multilateralism, and the threat of diseases and pandemics, all of which could hinder Africa’s progress toward sustainable development.
Solution
To close this gap, President Mahama called for a holistic strategy that prioritizes domestic resource mobilization, strengthens tax systems, and curbs illicit financial flows.
He stressed the vital role of African multilateral financial institutions in driving sustainable development and emphasized the need to reinforce these institutions to support Africa’s economic transformation and the successful implementation of Agenda 2063.
The creation of key African Union financial bodies—including the African Central Bank, African Investment Bank, African Monetary Fund, and Pan-African Stock Exchange is expected to enhance investment and financial access across the continent.
President Mahama urged African nations to expedite the establishment of these institutions and leverage their collective power to address Africa’s financing and investment shortfalls.
“It is our responsibility to strengthen our African multilateral financial institutions to effectively contribute to the transformation and realization of our agenda 2063,” he said.
The meeting was attended by high-ranking officials from various multilateral organizations, both within and beyond 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.
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