Mahama Calls for Africa to Finance Its Own Development

The president urges nations to reduce reliance on external aid

by Adedotun Oyeniyi February 17, 2025

February 17, 2025

KEY POINTS

Mahama urges Africa to fund its own development.
Africa faces a $402 billion annual financing gap until 2030.
AU financial institutions could help reduce dependence on foreign aid.

President John Dramani Mahama has called on African countries to mobilize domestic resources to reduce reliance on foreign aid and achieve sustainable economic growth.

Speaking at the African Union (AU) Heads of State and Government breakfast dialogue in Addis Ababa, Ethiopia, Mahama highlighted Africa’s economic resilience, noting that growth is projected to reach 4.03 percent in 2025.

The positive growth projections, according to President Mahama, fail to produce significant per capita income growth, as numerous African economies continue to depend on lower productivity sectors.

The leader emphasized that economic structure needs to change to achieve lasting development goals.

Bridging Africa’s $402 billion financing gap

Mahama emphasized that Africa faces a financing gap of approximately $402 billion annually until 2030.

He stressed the importance of devoted leadership funds towards infrastructure development, healthcare, education as well as technological enhancements to unlock Africa’s complete potential.

“This financing gap is not just a statistic,” Mahama said. “It represents the unrealized potential of millions of Africans who rely on strategic investments for a better future.”

According to Graphic Online, he also pointed to climate change, geopolitical tensions, and economic instability as additional threats that could disrupt progress toward sustainable development.

Reducing dependence on loans and foreign aid

Mahama advocated for domestic resource mobilization, tax reforms and efforts to stop illicit financial flows as a solution to complete financial budget gaps.

He emphasized the value of African multilateral financial institutions for economic growth through his call to expedite the establishment of AU financial bodies, including:

African Central Bank
African Investment Bank
African Monetary Fund
Pan-African Stock Exchange

Additionally, Mahama proposed that financial institutions establish new funding tools to reduce dependence on foreign loans and protect African economic independence.

Dr. Ngozi Okonjo-Iweala who serves as the World Trade Organization Director-General expressed similar opinions to Mahama about urging African leaders toward alternative investment approaches beyond borrowing.

“We must maximize the benefits of investments coming into Africa and ensure sustainable economic growth,” Okonjo-Iweala said.

She proposed multiple strategies which included adding value to the natural resources of Africa, pension fund investments and the creation of carbon pricing mechanisms for new revenue streams.

Adedotun Oyeniyi

Adedotun Oyeniyi is a creative and professional powerhouse in Nigeria, excelling as a music artist, administrative manager, content creator, and writer. Balancing artistry with leadership, he administratively manages operations at Lushly Agric Limited, where Green House Agriculture is being practiced, which champions sustainability, he crafts engaging content, and writes impactful stories. His blend of creativity and expertise makes him a valuable figure across diverse fields.

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