President John Dramani Mahama has called on African countries to reduce their dependence on foreign aid by strengthening local industries, improving access to affordable financing and taking greater control of their economies.
Speaking at the Financial Times Africa Summit in London, President Mahama criticised the global financial system for imposing what he described as unfair borrowing costs on African countries, urging international investors, lenders and policymakers to support a more equitable economic framework.
He noted that African governments sometimes pay interest rates up to eight times higher than those paid by Western countries, making it more difficult for them to finance development projects and respond to economic challenges.
“The global order is rigged against Africa. I have always maintained that position,” he told delegates.
President Mahama also highlighted the difficulties African countries face in financing climate change responses, despite contributing relatively little to the problem.
He argued that the continent must move beyond its traditional reliance on international donors, particularly as Official Development Assistance (ODA) continues to decline.
According to him, African countries should focus on building resilient economies capable of mobilising domestic resources and sustaining essential public services without depending heavily on external support.
Using Ghana as an example, President Mahama said the withdrawal of funding from the United States Agency for International Development (USAID) had cost the country approximately US$154 million annually, including US$74 million previously allocated to critical health services such as HIV testing and antiretroviral treatment.
He explained that the funding shortfall prompted the introduction of the Accra Reset initiative, which was initially intended to protect social spending but has since developed into a broader framework for economic governance and self-reliance across the Global South.
President Mahama stressed that African countries must have a greater role in decisions affecting their development, insisting that nations cannot fully control their economic outcomes without participating in the decision-making process.
He further called for a shift from exporting raw materials to investing in local processing, manufacturing and value addition.
According to him, expanding industrial activities across the continent would create employment opportunities for young people while attracting long-term private investment, foreign direct investment and strategic business partnerships.
President Mahama maintained that Africa should not isolate itself from the global economy but should pursue partnerships based on fairness, shared ownership and the development of local industrial capacity.
He said strengthening domestic industries would enable African countries to retain more value from their natural resources, generate jobs and establish more sustainable economic foundations.
