President Nana Addo Dankwa Akufo-Addo urges fellow Heads of States and the global business community to zero in on unleashing the potential income of $450 billion driven by AfCFTA through continental trade by 2035.
Akufo-Addo envisions that a one percent surge in Africa’s share of global trade from two to three percent could result in an additional $70 billion per annum for the continent.
A pivotal stride towards achieving this, according to the President, involves rallying global support for a novel investment approach that underscores mutually reinforcing partnerships between the private sectors of advanced economies and African economies.
Speaking at the Africa-Italy summit on January 29, 2024, in Rome, Italy, President Akufo-Addo underscores the urgency of taking steps towards continent-wide resilience. He emphasizes the importance of steering clear of “tax-dodging,” characterized by illegitimate commercial transactions by multinationals, responsible for 60% of the annual $88 billion illicit financial flows from Africa.
Acknowledging that 80% of infrastructural projects in Africa face challenges at the feasibility and business planning phase, Akufo-Addo expresses optimism that, with the right reforms, Africa could unlock $550 billion in annual infrastructure investments, as per analysis by McKinsey & Company.
He acknowledges that Africa confronts challenges in governance, speculative risk perception, and an environment inhibiting investor confidence, not a scarcity of financing. A de-risked landscape that attracts resources from private sources, international financial institutions, and sovereign wealth funds, he emphasizes, is crucial for delivering transformative investments like infrastructure.
The African Development Bank indicates the continent’s infrastructure financing needs will reach $170 billion annually by 2025, with an estimated gap of around $100 billion per year.
Akufo-Addo stresses that, with a population growing at a rate of 2.5% annually, addressing the urgent need for reliable electricity, affordable housing, improved transportation, and accessible health infrastructure is essential.
Discussing efforts to provide quality economic infrastructure for Africa’s post-COVID-19 recovery, he highlights recent global events, including the COVID-19 pandemic, the Russian invasion of Ukraine, and turmoil in the Middle East. He emphasizes the increased need for policymakers in Africa to achieve a structural transformation fostering inclusive and sustainable growth patterns over the medium to long term.