The Presidential Advisor on the Economy, Seth Terkper, has emphasized the need for African countries to build their capacity to finance development. Speaking at the 8th edition of the Chamber of Commerce and Industry France-Ghana (CCIFG) Gala Dinner and Awards, Mr. Terkper noted that declining access to grants has placed greater responsibility on the private sector to support economic growth. He stressed that African countries can no longer rely on grants and concessional financing due to their changing economic classification.
Africa's economic landscape has undergone significant changes, with many countries attaining lower- and upper-middle-income status. As a result, they are increasingly losing access to grants and concessional financing. Mr. Terkper cited the example of the Akosombo Dam, a major development project financed through a 40-year concessional loan with a 10-year moratorium and 30 years for repayment. He noted that similar projects are now being financed under shorter terms, with some World Bank-associated projects having a maximum repayment period of 25 years and a five-year moratorium.
The former Finance Minister attributed the situation partly to the loss of concessional financing, which has compelled several African countries to turn to international financial markets without adequate preparation. He urged chambers of commerce and business organizations to support a transformation in Africa's approach to economic development. Mr. Terkper also encouraged African countries to draw lessons from emerging economies that have successfully moved from exporting raw materials to producing value-added goods.
Mr. Terkper emphasized that the call for greater domestic financing does not mean African countries should reject support from international partners. Instead, they should develop stronger domestic financing mechanisms while maintaining strategic partnerships with advanced economies and international financial institutions. He highlighted the importance of Ghana-France economic relations, which provide opportunities for trade, investment, technology transfer, and access to international markets.
The partnership between Ghana and France has facilitated commercial relationships, business partnerships, and the exchange of expertise between the two countries. Mr. Terkper commended CCIFG's role in promoting economic ties between Ghana and France. The event, which was attended by several dignitaries, including the France Ambassador to Ghana, Diarra Dimé-Labille, and President of CCI France Ghana (CCIFG), Guillaume Valence.
The gala dinner and awards night provided a platform for business leaders and other stakeholders to discuss ways to strengthen economic ties between Ghana and France. Mr. Terkper's keynote address underscored the need for African countries to take ownership of their development agenda. He encouraged businesses to play a more significant role in supporting economic growth and development.
The event concluded with a call to action for African countries to develop their capacity to finance development. Mr. Terkper's remarks resonated with the audience, who acknowledged the need for a new approach to economic development in Africa. The CCIFG Gala Dinner and Awards Night is an annual event that brings together business leaders, policymakers, and other stakeholders to promote economic cooperation between Ghana and France.
Key points
- African countries must build their capacity to finance development due to declining access to grants.
- The changing economic classification of African countries has resulted in reduced access to concessional financing.
- Domestic financing mechanisms and strategic partnerships with international financial institutions are crucial for Africa's economic development.
