Resource mobilization and governance reform seen as keys to transformation

 Save as PDF

Lagos, Nigeria – Mobilizing domestic resources and strengthening governance are the non-negotiable pillars for transition states seeking sustainable growth, economists concluded at the AfDB policy dialogue.

AfricaHeadline Reports Team
editorial@africaheadline.com 

Five priority areas were highlighted: tax reform, tackling illicit financial flows, harnessing remittances, managing debt responsibly, and building stronger international partnerships. Africa loses an estimated $90 billion every yearthrough tax evasion, aggressive avoidance, and profit-shifting by multinational corporations, more than the total aid the continent receives annually.

Remittances from the African diaspora, valued at over $100 billion in 2024, were flagged as an underutilized resource. Experts argued that if even a fraction of these transfers were channeled into productive investment, they could transform infrastructure, agriculture, and renewable energy sectors.

But above all, panelists insisted, leadership and governance matter most. “Africa doesn’t suffer from a lack of resources, it suffers from a lack of accountable leadership,” one economist remarked. Stronger anti-corruption frameworks, debt transparency, and visionary policies will determine whether transition states remain trapped in fragility or emerge as growth engines of the continent.

The AfDB pledged to expand its support for reforms, institutional capacity, and private-sector engagement, reiterating that Africa’s future will be won or lost in how its most fragile states transform.