President of the Republic of Ghana, His Excellency John Dramani Mahama has emphasized the necessity for African nations to implement strategies aimed at decreasing borrowing expenses.
He made the statement during a meeting at the Jubilee House of Ghana today with the Chairperson of the African Union Commission, H.E. Mahmoud Ali Youssouf.
The President called for a robust enhancement of the continent’s financial institutions and an increased investment of foreign reserves within Africa itself.
As Ghana gears up to take on the rotating chairmanship of the Economic Community of West African States (ECOWAS) in 2027, President Mahama outlined key objectives for his country’s leadership.
He highlighted the critical role that Africa’s financial institutions must assume in delivering affordable credit to member countries.
“We stand as advocates for African financial institutions and believe there is significant potential for these entities to provide lower-cost loans to nations across the continent.
At present, we are forced to secure loans at exorbitant interest rates, which our economies can ill afford,” he stated.
The President suggested that a portion of African nations’ foreign reserves be redirected back into the continent to support development initiatives at more favorable interest rates.
“We need to explore avenues for reducing borrowing costs. One of our proposals is to channel some of the foreign reserves held by African countries back into our economies, allowing us to lend to one another at reduced rates,” he remarked.
This initiative, according to President Mahama, would diminish reliance on costly external borrowing and enhance access to affordable financial resources for African nations.
By: Magdalene Agyeiwaa Sarpong