Africa’s over-dependence on foreign commodities, according to former President John Dramani Mahama, is disgraceful.
Intra-African trade, he believes, should be encouraged on the continent to improve trade and promote self-sufficiency.
“We must push for self-reliance for critical strategic commodities and supplies such as rice, tomatoes, onions, and vegetable oil, for which we have comparative advantage,” Mr. Mahama remarked at the Harvard Business School’s 24th African Business Conference. It’s a pity that Africa continues to import these commodities when we have excellent growing conditions.”
“Africa must gain greater control over the trading and processing of its natural resources, including as cocoa and minerals, and strengthen its capacity to respond to global energy shocks resulting from circumstances like the Russia-Ukraine conflict,” says the report.
Mr. Mahama also called for the Debt Service Suspension Initiative (DSSI) to be reintroduced to help Africa deal with its mounting public obligations.
“Many African countries, including Ghana, have reached debt distress levels, with debt-to-GDP ratios ranging from 70% to 80%.”
“I’m pushing for a reintroduction of the Debt Service Suspension Initiative to provide fiscal room for our countries to spend in important areas like education and health.”
The Russia-Ukraine conflict has harmed most African countries by reducing Russian and Ukrainian shipments of critical commodities such as wheat, sunflower oil, and corn. It has also had an impact on the cost of fuel, fertilizer, and other important agricultural inputs.
The war is hurting the agricultural value chain in the majority of these countries, including Ghana.
