President Mahama calls for Global South to break aid dependency, boost local production

President John Dramani Mahama has urged African nations to reduce their reliance on foreign aid, enhance domestic financing, and accelerate industrialization to foster job creation and build resilient economies. During a speech at the Financial Times Africa Summit in the United Kingdom, Mahama highlighted the shifting global landscape and diminishing Official Development Assistance (ODA) as an opportunity for the Global South to regain control over their development priorities.

He introduced the Accra Reset initiative, a strategy to empower the Global South by bolstering local capacity, enhancing financing for critical sectors, and minimizing dependence on external support. Ghana has reportedly lost around $154 million annually following the withdrawal of USAID aid, with approximately $74 million previously dedicated to healthcare initiatives, including HIV testing, antiretroviral treatment, and President's Emergency Plan for AIDS Relief (PEPFAR).

Mahama emphasized that the answer to dwindling aid is not to improve begging skills but to build resilience and sustainable financing systems. He explained that while the Accra Reset initially targeted health, it has now broadened into a comprehensive framework for the Global South to adapt to changes in the international order.

Major players, including Germany, the United Kingdom, the World Health Organization, Gavi, and the Global Fund, have expressed interest in the framework, which requires countries to establish clear development priorities, determine their domestic contributions, and ensure external partners align their support with nationally agreed objectives.

Mahama stressed that African countries must control their development programs, as ownership of the outcome cannot be claimed when they are not part of the decision-making process. He urged a shift towards industrialization to move away from exporting raw materials and importing finished goods. Citing Ghana's gold industry, he noted that about 70% of the country's gold is refined locally before export.

Ghana aims to refine all its gold domestically while expanding the downstream jewellery industry to allow for the export of finished products. The President also highlighted a policy to process at least 50% of annual cocoa production locally and called for investors to establish an alumina refinery to capture more value from bauxite exports.

By 2030, Ghana seeks to end the export of raw ores while ensuring that investors become integral to the country's industrial transformation. Mahama reaffirmed Ghana's commitment to welcoming investors from around the world, emphasizing the non-aligned foreign policy that fosters positive relationships with diverse global partners.

He encouraged investors from the United States, the European Union, China, Russia, India, and others to recognize the opportunities in Africa and contribute to the country's development.