By Abdi Ali
Published March 10, 2025
African Heads of State and Government and Business Leaders have reaffirmed the continent’s commitment to accelerating sustainable economic development.
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John Dramani Mahama, President of Ghana, has emphasized the urgency of strengthening Africa’s financial independence through domestic resource-mobilization, concessional financing and strategic public-private partnerships.
“Africa must harness its own financial and investment capacities to drive the transformative vision of Agenda 2063. We cannot continue to rely on external financing mechanisms that do not align with our long-term development goals,” Mahama says.
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In her address during a Presidential Breakfast Dialogue to address the continent’s financing and investment gaps, Ngozi Okonjo-Iweala, Director General of World Trade Organization (WTO), has stressed the need for Africans to take charge of their own development by shifting mindsets and strengthening financial self-sufficiency.
“The Africa Club is a crucial step toward looking inward and harnessing our own potential. However, we need to focus on four key priorities for Africa’s financial and economic transformation: Firstly, strengthening African financial institutions – If we are to finance our continent’s development, we must capitalize our own financial institutions, including national development banks, ensuring they have the resources to support Africa’s needs. Secondly, let’s address debt challenges to attract investment – we must focus on attracting and retaining investment, including foreign direct investment (FDI), and implementing coordinated strategies to leverage equity financing. Instead of relying on aid, Africa should push for partnerships that channel financial resources into investments. Thirdly, let’s leverage domestic resources – with over $250 billion in pension funds on the continent, we must tap into these resources for development. Strengthening our capital markets, integrating African financial institutions, and utilizing diaspora bonds can significantly boost Africa’s financial resilience. Lastly, let’s drive trade and economic growth – sustainable financing hinges on Africa’s ability to grow its economies, trade more and add value to its products. Without economic expansion, the resources needed to bridge financing gaps will remain out of reach,” notes Dr Okonjo-Iweala.
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“This is an exciting time for Africa, which has been stretching and renewing itself economically, politically and socially in recent years. Only the grumpiest pessimists will bet against this new era of ‘Africa Time’ for its economic and social transformation as envisioned under Agenda 2063,” Monique Nsanzabaganwa, Deputy Chairperson of the African Union Commission, highlighted Africa’s immense potential and the critical role of collaboration during the meeting that was held on the sidelines of the 38th Ordinary Session of the Assembly of the African Union Summit in the Ethiopian capital, Addis Ababa.
Urging investors to seize the opportunities within Africa’s evolving economic landscape, Dr Nsanzabaganwa says, “You will be right to have faith and believe in investing in Africa. The continent is perceived as the ‘new frontier,’ the ‘future paradise’ that sharpens a race to markets by an increasing number of investors.”
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Benedict O Oramah, Chairperson of the Alliance of African Multilateral Financial Institutions (AAMFI)’s Governing Council and President of Afreximbank, underscored the significance of African financial institutions leading the charge in development finance.
“AAMFI represents Africa’s collective financial strength and, through coordinated action, we will mobilize resources at scale to achieve Agenda 2063,” he says, stating Africa’s need for financial solidarity in debt resolution: “We have developed a platform that will make it possible to jointly invest in projects that are impactful to the continent. There is no reason why the bridge across Congo Brazzaville and Congo Kinshasa should not be built, the cost is a mere US$500 million; there is no reason why railways cannot be built across Africa, at best they cost about US$1-2Bn. We cannot call for a reform of the international financial architecture on weak legs, no one will listen to us if they view us as mere beggars. We must rely on our own institutions and use this platform to leverage our individual and collective resources to transform our continent. Let’s strengthen our alliance to meet our set objectives.”
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The event, that was hosted by President Mahama in his capacity as Champion on African Union Financial Institutions in collaboration with AUC and AAMFI, also witnessed special investment announcements:
- African Trade Transformation Fund (ATTF), a groundbreaking US$5 billion concessional finance window initiative by Afreximbank to provide concessional financing to unlock new opportunities for African businesses and governments
- Shelter Afrique Development Bank (ShafDB) introduced the Catalytic Capital Replenishment Fund to bridge the housing and urban infrastructure gap in Africa which is reported to be a 53-million-unit deficit requiring $1.3 trillion to bridge
- The African Reinsurance Corporation (Africa Re) Group has pledged $1 million to the African Union Peace Fund. Additionally, the Corporation donated $500,000 to the Africa CDC during the COVID-19 pandemic and has now authorized the use of the balance for Mpox response efforts. The Group Managing Director further stated that Africa Re has committed 2% of its net profits to the African Re Foundation, which will allocate funds to support various initiatives across the continent, including disaster risk financing
- The African Solidarity Fund (ASF) established two key partnerships: a $320 million Guarantee Line to enhance access to housing credit and a $240 million Credit Line Guarantee to support women and youth empowerment, fostering entrepreneurship in the WAEMU
- Arab Bank for Economic Development in Africa (BADEA) launched a Debt for Equity initiative to support the capitalization of African Multilateral Financial Institutions by mobilizing resources from the Arab world towards sub-Saharan Africa.
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Discussions centered on innovative strategies for mobilizing African capital, strengthening financial institutions and leveraging the role of AMFIs in financing critical development sectors such as infrastructure, industrialization, and trade.
Attending the meeting were African Heads of State and Government from Angola, Nigeria, Mauritania, Rwanda, Zambia, Libya, Kenya, Cote d’Ivoire, Benin and Equatorial Guinea.
