Africa Pays Eight Times More for Borrowing Despite Vast Resources - Mahama
President Mahama says Africa pays eight times higher interest on loans than other regions despite its wealth in oil, lithium and gold.
President John Dramani Mahama told a New York audience that Africa pays eight times more for borrowing than other parts of the world. He said the continent is rich in oil, lithium and cobalt yet treated as a high‑risk borrower.
Illicit financial flows drain about $90 billion each year, he noted, while interest payments and risk premiums add billions more to debt costs. In total, over $240 billion leaves Africa annually through these channels, far outpacing the aid that returns.
Mahama stressed that debt problems start before any IMF programme is signed. He argued that accepting African mismanagement does not excuse a global financial system that charges the highest rates to those who need capital most.
The President asked how a continent with so much gold can keep worrying about dollars. He pointed to Ghana’s exports of gold, cocoa and oil, which generate foreign exchange but also expose the economy to dollar shocks.
When the cedi weakens, businesses pay more for imported machinery and raw materials. The cost eventually reaches ordinary Ghanaians who may never handle a dollar themselves.
Recent data showed Ghana’s foreign reserves at $11.9 billion by the end of 2025, helped by strong gold earnings. The cedi has also firmed, offering a temporary reprieve.
Mahama questioned whether stabilising the cedi is enough. He urged a deeper talk about how much of the value from Ghana’s resources stays on the continent. He announced plans to process half of Ghana’s cocoa locally to capture more of the product’s worth.
Farmers who rely solely on cocoa face price drops, disease and climate stress. Diversification into food crops and agroforestry could provide extra income and reduce vulnerability.
The President warned that returning to the IMF after every crisis creates a repeating cycle. He called for African nations to build stronger sources of capital and reduce dependence on expensive foreign borrowing.
Mahama concluded that true economic progress is measured not by how fast a country recovers, but by how hard it is to break the crisis cycle in the first place.
