Ghanaian President John Dramani Mahama has issued a sobering reminder that despite Africa’s promising economic trajectory, the continent continues to grapple with significant challenges.
Speaking at a high-level dialogue in Addis Ababa, Ethiopia, Mahama highlighted the urgent need to address a staggering financing gap and uneven structural transformation to ensure sustainable growth.
The event, a Heads of State and Government breakfast dialogue held on the sidelines of the African Union (AU) Summit, brought together key stakeholders to discuss Africa’s financial future. Mahama, who serves as the Champion of African Union Financial Institutions, delivered the keynote address, emphasizing the critical role of domestic resource mobilization in reducing reliance on external financing.
“Notwithstanding these positive trends, we must confront the reality that our growth has not always translated into significant improvements in per capita income,” Mahama stated. He pointed out that many African economies remain dependent on low-productivity sectors, hindering meaningful structural transformation.
One of the most pressing issues Mahama highlighted is the continent’s financing gap, estimated at approximately $402 billion annually until 2030. “This financing gap is not merely a statistic,” he said. “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.”
Despite these challenges, Mahama expressed optimism about Africa’s economic resilience. Projections indicate a recovery in growth to 3.7 percent in 2024 and 4.03 percent in 2025, reflecting the continent’s inherent strength and the effectiveness of policy interventions. “This optimistic outlook highlights the inherent strength of our economies and the effectiveness of policy interventions,” he noted.
The dialogue, themed Africa at the Forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063, was hosted under the auspices of the Alliance of African Multilateral Financing Institutions, also known as the African Club. The event saw the participation of high-level officials from various multilateral organizations, including Professor Benedict Oramah, President of Afreximbank; Dr. Ngozi Okonjo-Iweala, Director General of the World Trade Organization (WTO); and Dr. Donald Kaberuka, the AU High Representative for Financing of the Union and the Peace Fund.
Mahama’s address underscored the importance of collective action and innovative financing mechanisms to bridge the continent’s funding gap. He called for increased investment in critical sectors such as infrastructure, education, and healthcare, stressing that these investments are essential for unlocking Africa’s full potential.
The former president’s remarks serve as both a rallying cry and a reality check. While Africa’s economic prospects are undeniably bright, the road ahead is fraught with challenges that require decisive action and strategic planning. Mahama’s call to prioritize domestic resource mobilization and sustainable growth strategies reflects a broader consensus among African leaders: the continent’s future prosperity hinges on its ability to harness its own resources and chart its own course.
As the AU Summit continues, Mahama’s message resonates as a timely reminder that Africa’s journey toward economic transformation is far from complete. The continent’s leaders must now translate their optimism into concrete actions that address the pressing needs of their people and secure a brighter future for generations to come.
