President Mahama Advocates for African Financial Independence
Former President John Dramani Mahama has urged African nations to reduce their reliance on external funding by mobilizing domestic resources, strengthening financial institutions, and investing in long-term sustainable development.
Speaking at the Heads of State and Government Breakfast Dialogue at the African Union (AU) Commission headquarters in Addis Ababa, Ethiopia, Mahama underscored Africa’s economic resilience, citing projected growth rates of 3.7% in 2024 and 4.03% in 2025 as evidence of effective policy interventions.
“This positive outlook reaffirms the strength of our economies and the impact of strategic policies,” he noted.
The event, held as a side session of the AU Summit, was organized under the Alliance of African Multilateral Financing Institutions (African Club) and featured prominent figures such as Afreximbank President Professor Benedict Oramah, WTO Director-General Dr. Ngozi Okonjo-Iweala, and AU High Representative for Financing, Dr. Donald Kaberuka.
The Challenge of Sustainable Growth
Despite economic progress, Mahama cautioned that structural transformation remains inconsistent, with many African economies still heavily dependent on low-productivity sectors.
“While we celebrate these gains, we must acknowledge that economic growth has not always translated into significant improvements in per capita income,” he warned.
He highlighted an annual financing gap of $402 billion until 2030, which he described as a critical barrier to Africa’s development ambitions.
“This gap is not just a number—it represents the unrealized potential of millions of Africans whose future depends on our ability to invest in infrastructure, education, technology, and healthcare,” Mahama stated.
Beyond financial shortfalls, he pointed to additional challenges such as climate change, geopolitical tensions, global health crises, and trade imbalances that could hinder Africa’s progress.
Strategies for Financial Independence
To bridge the funding gap and drive sustainable growth, Mahama proposed a multi-pronged approach:
- Enhancing domestic resource mobilization
- Strengthening tax administration
- Combating illicit financial flows
Additionally, he called for the swift establishment of key AU financial institutions, including the African Central Bank, African Investment Bank, African Monetary Fund, and Pan-African Stock Exchange, to empower the continent’s financial ecosystem.
“We must take responsibility for strengthening our own financial institutions to ensure the success of Agenda 2063,” he emphasized.
A Call for Smarter Investments
During the dialogue, WTO Director-General Dr. Ngozi Okonjo-Iweala urged African leaders to shift away from excessive borrowing and instead focus on innovative financing solutions.
“We must not only attract investments but also sustain them for Africa’s long-term development,” she advised.
She suggested leveraging Africa’s natural resources through value addition, tapping into pension funds for long-term investments, and exploring innovative carbon pricing mechanisms.
The event concluded with a high-level panel discussion on Mobilizing African Investment and Financing for Implementing Agenda 2063, where experts shared actionable strategies to unlock Africa’s financial potential and accelerate the continent’s development goals.