Africa debt trap: Mahama calls for fair and equitable financial markets

President John Dramani Mahama has urged for a more equitable international financial system, expressing concern that African economies are burdened with higher borrowing costs despite their rich natural resources. He made this demand during a meeting with members of the Council on Foreign Relations and prominent business leaders, pointing out imbalances in the global financial and trading system.

Mahama highlighted that African nations frequently face higher interest rates when borrowing, even as their resources are extracted and exported to developed countries at lower prices. He questioned the fairness of a system where international companies benefit from Africa's resources while African countries bear the high costs of financing their own development.

Additionally, Mahama criticized artificial barriers hindering Africa's economic progress and limiting its competitiveness in global markets. He emphasized the importance of African countries moving beyond raw material exports and retaining more value from their resources through local processing. Concerning Ghana's cocoa industry, Mahama pledged to process at least half of Ghana's cocoa domestically, reducing the country's reliance on exporting raw cocoa beans.

He also indicated plans to enhance local value addition in the minerals sector, especially gold, to ensure a larger share of the wealth from Ghana's natural resources stays within the country. Mahama's remarks reflect his broader advocacy for changes to global economic structures that continue to disadvantage African economies and hinder their development prospects.