President Nana Addo Dankwa Akufo-Addo has called on world leaders and the global business community to seize the potential income of $450 billion generated from continental trade under the African Continental Free Trade Area (AfCFTA) by 2035.
He also highlighted the significance of increasing Africa’s share of global trade from two percent to three percent, which could result in an additional annual income of $70 billion for the continent.
To achieve these goals, President Akufo-Addo stressed the importance of fostering mutually beneficial partnerships between the private sectors in advanced economies and African economies. The President urged the global community to support a new investment approach that prioritizes these partnerships, as well as propositions that encourage the sustainable development of Africa.
Addressing the issue of illicit financial flows, President Akufo-Addo emphasized the urgency of tackling “tax-dodging” practices by multinational corporations. These practices are responsible for 60% of the $88 billion illicit financial flows from Africa each year, hindering the continent’s progress.
While acknowledging the challenges faced by African infrastructure projects, where 80% fail during the feasibility and planning stages, President Akufo-Addo pointed out that suitable reforms and interventions could unlock annual investments of $550 billion in infrastructure, as highlighted by McKinsey & Company.
The President highlighted that Africa’s biggest challenge is not the scarcity of financing, but rather poor governance, risky perceptions, and an unfavorable environment for attracting investors. He expressed confidence in creating a de-risked landscape that attracts investment from private sources, international financial institutions, and sovereign wealth funds, urging governments to prioritize transformative investments in infrastructure for Africa’s development.
According to the African Development Bank, Africa’s infrastructure financing needs will reach $170 billion annually by 2025, with a gap of approximately $100 billion per year.
President Akufo-Addo stressed the urgency to address reliable electricity, affordable housing, improved transportation networks, and accessible healthcare infrastructure, particularly in light of Africa’s growing population of 2.5% annually.
In light of recent global events, such as the COVID-19 pandemic, the Russian invasion of Ukraine, and turmoil in the Middle East, which pose threats worldwide, the President underscored the need for African policymakers to achieve inclusive and sustainable long-term growth through structural transformation.
Overall, President Akufo-Addo’s message at the Africa-Italy Summit aimed to mobilize support from global stakeholders in realizing the immense potential of the AfCFTA and driving Africa’s economic development sustainably.
Source: Ngamegbulam Chidozie Stephen
Please contact Apexnewsgh.com on email apexnewsgh@gmail.com for your credible news publications. Contact: 0256336062
