“To achieve sustainable development, we envision those strategic investments in health, education, energy, technology, and infrastructure, are crucial,” he stated.
“It is noteworthy, however, that the financing gap for these investments is substantial.”
President Mahama, who is the Champion on African Union (AU) Financial Institutions said this in his keynote address at the Heads of State and Government breakfast dialogue held at the AU Commission headquarters in Addis Ababa, Ethiopia.
The event on the theme, “Africa at the forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063”, was held on the sidelines of the AU Summit, under the auspices of the Alliance of African Multilateral Financing Institutions, also called the African Club.
President Mahama reiterated that it was estimated at approximately $402 billion annually until 2030, if the AU was to achieve the aspirations of Agenda 2063 and the 2030 Sustainable Development Goals.
He said this financing gap is not merely a statistic; adding that it represents the unrealized potential of millions of Africans whose dreams for a better life depend on our ability to invest wisely in infrastructure, education, technology, and health.
“Our task, therefore, is to mobilise domestic resources effectively in order to reduce our dependence on traditional external financing and chart a path towards self-reliance and sustainable growth.”
He said Africa’s economic journey had demonstrated resilience, despite the numerous challenges that we face.
President Mahama said in 2023, the continent experienced a slowdown, with real gross domestic products (GDP) growth declining to 3.1 per cent from 4.1 per cent in 2022.
“However, projections suggest that a recovery is taking place, with growth expected to increase to 3.7 per cent in 2024 and 4.3 per cent in 2025.”
President Mahama said this optimistic outlook highlights the inherent strength of their economies and the effectiveness of policy interventions.
He said notwithstanding these positive trends; they must confront the reality that our growth has not always been translated into significant improvements in per capita income.
He said structural transformation remains uneven, with many economies still reliant on low productivity sectors.
He said additionally, the continent continues to face challenges, including climate crisis, geopolitical tensions, widening gaps in multilateralism, and diseases and pandemics which disrupt the positive growth path that they were on.
President Mahama said reiterated the need for African countries to mobilise domestic resources to reduce dependence on external financing and achieve sustainable growth.
He said Africa’s economic journey had demonstrated resilience despite numerous challenges, with projections indicating a recovery in growth to 3.7 per cent in 2024 and 4.03 per cent in 2025.
“This optimistic outlook highlights the inherent strength of our economies and the effectiveness of policy interventions.”
He said the role of African multilateral financial institutions in financing sustainable development could not be overemphasized.
He said these institutions were uniquely positioned to address trade, investment, and development gaps across the continent.
He said it was the responsibility of African Governments to strengthen them to effectively contribute to the continent’s transformation and the realization of their Agenda 2063.
GNA
