President Akufo-Addo has delivered a forthright message to African leaders, highlighting the critical impact of ineffective leadership as a primary obstacle to progress on the continent.
In his address, he underscored the imperative for a collective commitment to overcoming this internal challenge, emphasizing the pivotal role of sound governance in fostering sustainable development across Africa.
President Akufo-Addo also urged fellow Heads of State and the global business community to focus on unlocking the $450 billion potential income from the African Continental Free Trade Area (AfCFTA) by 2035.
A one percent increase in Africa’s share of global trade, he believes, could generate an additional seventy billion dollars annually for the continent.
To achieve this, the President calls for global support for a new investment approach prioritizing partnerships between private sectors in advanced economies and African economies.
Speaking at the Africa-Italy summit, he emphasized the need to combat tax-dodging and illicit financial flows, which hinder Africa’s development.
“Before 2020, Africa was attracting increasing foreign direct investment (FDI), although overall FDI inflows remained much lower than in other world regions. Between 2000 and 2019, FDI flows to Africa increased fourfold, with a compound annual growth rate of eight-point-five percent (8.5%). Our biggest challenge is not a scarcity of financing, but a confluence of poor governance, speculative risk perception, and a defective environment for crowding in investors.”
“it has become even more urgent to provide reliable electricity, affordable and decent housing, improved transportation networks, and accessible health infrastructure.” he emphasised.
Despite infrastructure projects often failing, the President is optimistic that with reforms, Africa could attract $550 billion in annual investments in infrastructure.
“Recent happenings within the global space, particularly the COVID-19 pandemic, the Russian invasion of Ukraine, and the turmoil in the Middle East, which is threatening to engulf the rest of the world, have increased the need for policymakers on the African continent to achieve a structural transformation that yields inclusive and sustainable growth patterns over the medium to long term.”
Emphasizing the importance of creating a de-risked landscape, President Akufo-Addo encourages innovative resource mobilization from private sources, international financial institutions, and sovereign wealth funds.
He stressed the need for transformative investments like infrastructure to boost Africa’s development.
The African Development Bank estimates the continent’s infrastructure financing needs at $170 billion annually by 2025, with a $100 billion gap. Given Africa’s 2.5% annual population growth, the President underscores the urgency to provide reliable electricity, affordable housing, improved transportation, and accessible health infrastructure.
Highlighting post-COVID-19 recovery efforts, he notes the increased need for policymakers in Africa to achieve a structural transformation amid global challenges such as the COVID-19 pandemic, the Russian invasion of Ukraine, and turmoil in the Middle East. This transformation aims to yield inclusive and sustainable growth patterns over the medium to long term.
This is a realisation after our president fraternizes with fellow heads of states in Africa. If they will all agree and change in accordance with the expectations of this speech. I want to believe our President is not playing to the European Union gallery to look like an African patriot. African leadership must change, and I pray and think that’s our number one major challenge. God bless Africa