Pursue private financing to achieve Africa’s development agenda …Finance Minister urges African leaders

The Minister for Finance, Dr Mohammed Amin Adam, has indicat­ed that significant private financing is needed to drive the continent’s transformation.

According to him, the imper­ative to mobilise private sector financing was so clear, particularly at the time when public finances across the continent have been impacted by multiple crises.

Speaking on the theme ‘Mobil­ising the Private Sector to Acceler­ate Africa’s Transformation’ at the Governors’ Dialogue at the on­going 2024 African Development Bank Annual General Meetings, he noted that the United Nations es­timated that approximately US$1.3 trillion would be required annually to meet Africa’s sustainable devel­opment needs by 2030.

“In fact, a report by this Bank indicates that ensuring access to electricity in Africa by 2030 will require over US$35 billion annu­ally, while around US$45 billion are needed per year to achieve Africa’s renewable energy goals,” he explained.

The Minister also revealed that the situation had aggravated for most African countries owing to their increasing vulnerability to climate and unmet climate financ­ing pledges prompting them to dedicate scarce public resources to climate action.

“Therefore, private finance is essential for plugging the gap, and for further mobilising additional resources to meet ever-increasing needs. Private Finance certainly has a critical role. We must focus on how to do this at scale and speed,” he stated.

The private financing, Dr Amin revealed rested on factors such as macroeconomic funda­mentals, political risk and quality of infrastructure and the ability to harness the potential of the sector would ensure adequate revenue mobilisation.

The Minister further disclosed that for governments to attract sufficient private capital for development, it was important to provide incentives and conditions to catalyse private investments.

Citing Ghana’s case, he stated the country’s aggressive pursuit of a bolstering and vibrant Small and Medium Enterprises to stimulate economy recovery and ensure sustainable growth.


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