The Minister for Finance, Dr Mohammed Amin Adam, has indicated that significant private financing was needed to drive the continent’s transformation.
According to him, the imperative to mobilize 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, “Mobilizing 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 said.
The Minister, who is also the MP for Karaga, revealed that, the situation had worsened 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 mobilizing 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 emphasized.
Private financing, Dr Amin Adam 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 mobilization.
The Minister disclosed that, for governments to attract sufficient private capital for development, it was important to provide incentives and conditions to catalyze private investments.
Citing Ghana’s case, he stated the country’s aggressive pursuit of a strong and vibrant small and medium enterprises to stimulate economic recovery and ensure sustainable growth.
He also touched on the Ghana Mutual Prosperity Dialogue framework, a public-private partnership aimed at attracting foreign and local investment by promoting shared growth.
