President John Dramani Mahama emphasized the importance of financial self-reliance for Africa’s socio-economic development during the 38th AU Summit.
He stressed that mobilizing African investments and financing is crucial to realizing the goals of Agenda 2063, which requires collective responsibility and effort.
Mahama highlighted Africa’s economic resilience despite challenges, citing a slowdown in 2023 with a real GDP growth decline to 3.1% from 4.1% in 2022.
President Mahama, who is the Champion on 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
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.
However, projections indicate a recovery with growth expected to increase to 3.7% in 2024 and 4.03% in 2025.
The President noted that Africa’s growth has not always translated to significant improvements in per capita income, and structural transformation remains uneven.
He emphasized the need for strategic investments in health, education, energy, technology, and infrastructure, estimating a substantial financing gap of approximately $402 billion annually until 2030.
To address this gap, Mahama advocated for domestic resource mobilization, improving tax administration, combating illicit financial flows, and encouraging tax compliance.
He also emphasized the importance of strengthening African multilateral financial institutions, such as the African Central Bank, African Investment Bank, African Monetary Fund, and Pan African Stock Exchange.
These institutions can facilitate trade, finance infrastructure projects, and reduce dependence on external financing.
Mahama urged African leadership and financial institutions to leverage collective strengths, foster strategic partnerships, and champion innovative solutions to bridge financing and investment gaps.
