Mahama Calls on African Leaders to Mobilize Domestic Resources to Fix $402bn Financing Gap
Addis Ababa, Ethiopia - 16 Feb, 2025 - Ghana's President John Dramani Mahama has a issued a clarion call to African Leaders to tackle the continent's crippling financing gap by prioritizing tax compliance and domestic resource mobilization.
Speaking at the African Union Commission headquarters in Addis Ababa, Ethiopia, Mahama highlighted the substantial financing gap facing Africa, estimated at $402 billion annually until 2030 and called for the need for a multifaceted approach to address the financing gap.
He also highlighted the importance of improving tax administration, combating illicit financial flows, and encouraging a culture of tax compliance.
Again, Mahama drew attention to the various challenges facing the continent, including climate crises, geopolitical tensions, and diseases. These challenges, he noted, threaten Africa's growth and sustainable development, making strategic investments in key sectors like health, education, energy, and technology crucial.
“Addressing the financial gap requires a multifaceted approach. Domestic resource mobilization is crucial for improving tax administration, combating illicit financial flows and encouraging the culture of tax compliance,” Mahama stated.
“This financing gap is not merely a statistic. It represents the unrealized potential of millions of Africans whose dream for a better life depends on our ability to invest wisely in infrastructure, education, technology, and health,'' he added.
In a similar vein, Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), urged African leaders to reduce their reliance on borrowing and instead focus on attracting and sustaining investments. She suggested exploring innovative funding sources, such as value addition to natural resources and pension funds.
“We must take advantage of investment that comes to Africa and be able to sustain them for our own development,” she stated.
Source: Lead News Online
