By Sarah Baafi
President John Dramani Mahama has called for bold and coordinated financing reforms to support Africa’s industrialisation, warning that limited access to affordable, long-term capital continues to slow the continent’s economic transformation.
Speaking at the opening of the Africa Trade Summit in Accra on Wednesday, President Mahama said industrialisation remains capital-intensive, yet many African economies continue to grapple with shallow financial markets and high interest rates.
“The central question before us is simple: how do we finance Africa’s industrialisation at the required scale and speed?” he asked.
He noted that small and medium-sized enterprises, which make up the majority of Africa’s industrial workforce, are among the most affected by limited access to financing.
President Mahama urged African governments to mobilise domestic resources more effectively through improved revenue collection, stronger public financial management and decisive action against illicit financial flows.
“Africa must mobilise its domestic resources more effectively,” he stressed.
He also called for the unlocking of institutional capital held by pension funds, insurance companies and sovereign wealth funds across the continent.
“Our pension funds, insurance companies and sovereign wealth funds manage hundreds of billions of dollars,” he said. “With the right instruments, this capital can be channelled into industrial investment.”
The President added that governments must actively attract private sector investment through risk-sharing mechanisms, credit guarantees and stable policy environments, while development partners and multilateral institutions provide de-risking instruments to support industrial growth.
