President Mahama And Other Heads Of State Discuss Sustainable Economic Growth In Africa

African countries have been urged by President John Mahama to increase domestic resource mobilization in order to lessen their dependency on external funding 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 recovery 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 Multilateral Financing Institutions (AAMFI), also known as the African Club, brought together distinguished representatives from a number of multilateral organizations.

Among the notable attendees were Professor Benedict Oramah, Chairperson of the AAMFI and President of Afreximbank; Dr Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO); and Dr Donald Kaberuku, African Union High Representative for Financing of the Union and the Peace Fund.

Despite the positive economic outlook, President Mahama issued a warning about the continent’s impending challenges.

“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 emphasized how urgent it is to close a difficult funding gap that is projected to be around $402 billion a year 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.”

Apart from monetary limitations, Mahama highlighted additional difficulties such as climate concerns, geopolitical conflicts, and possible disturbances from illnesses and pandemics. He recognized the significant funding gap required to support these initiatives and emphasized the significance of making strategic investments in vital sectors.

Mahama suggested a multipronged approach to close this gap, which includes enhancing tax administration, reducing illicit financial flows, and bolstering domestic resource mobilization. He emphasized the critical role that African multilateral financial institutions play in promoting sustainable development and called for them to increase their ability to further Agenda 2063 in Africa.

“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.

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Speaking at the ceremony, Dr Ngozi Okonjo-Iweala, the WTO’s Director General, also 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.

The event also featured a high-level panel discussion focused on strategies for mobilising African finance to meet the objectives of Agenda 2063, reinforcing the dialogue’s commitment to achieving sustainable development across the continent.