AfDB report tells African countries to look inwards as they seek to finance their structural transformation

A report released by the African Development Bank (AfDB) has called on African countries to look inwards as they seek to finance their structural transformation.

The report said the importance of strengthening domestic revenue mobilization through improved tax policies, enhancing efficiency in government revenue collection and utilization, combatting illicit financial flows and tax avoidance, and leveraging Africa’s abundant natural resources will remain key.

Under reforming debt resolution mechanisms, the report said the existing debt resolution mechanisms such as the G20 Framework are not very responsive to the needs of African countries that need them.

It recommends radical reforms for speedy debt workouts and sustainable debt management, including innovative market-based solutions, debt relief for climate action, and sovereign debt authority systems.

With regards to leveraging Private Sector Financing, the report said the private sector will remain a key partner in financing African economies. Countries need allow greater private sector participation in the economy to complement public investments, particularly in areas with high social returns such as climate action and human capital development.

Read the full report on Ghana here