Africa Must Diversify Development Financing Beyond Loans — Joana Gyan Cudjoe
The Member of Parliament for Amenfi Central, Hon. Joana Gyan Cudjoe, has called on African countries to reduce their overreliance on borrowing while pursuing a balanced financing strategy that combines carefully negotiated loans with grants and concessional funding to accelerate the continent’s development.
Hon. Joana Gyan Cudjoe made the remarks during the 2026 Africa Days Forum in Brussels, Belgium, where she represented Ghana as part of a delegation that included the General Secretary of the National Democratic Congress (NDC), Hon. Fifi Fiavi Kwetey.
The annual forum brought together African leaders, European Union policymakers, development finance institutions, private sector representatives, and international development partners to deliberate on key issues affecting Africa’s economic transformation. Discussions focused on infrastructure financing, trade and investment, sustainable development, climate resilience, and strengthening Africa-EU partnerships.
Speaking during a panel session on “Financing Africa’s Infrastructure Gap,” the Amenfi Central legislator stressed that Africa must adopt a pragmatic approach to development financing rather than waiting for ideal funding opportunities.
“If we wait only for ‘perfect’ money, our roads, rail lines, hospitals and digital infrastructure will keep waiting too. We should take calculated risks in accessing China loans where the terms support projects that create jobs and local value. At the same time, we must leverage EU grants and concessional funding for areas like green energy, health and education.”
She explained that the real challenge was not whether to borrow but how governments manage borrowed resources responsibly.
“The key is not to avoid risk, but to manage it. We must negotiate transparent terms, tie loans to projects with clear economic returns, and ensure technology transfer and meaningful local participation.”
Hon. Joana Gyan Cudjoe further urged African governments to lessen their dependence on loans by strengthening domestic revenue generation, attracting responsible private investment, and making greater use of grants and concessional financing available through international partnerships.
Drawing from the realities of her constituency, she said strategic investments could transform local economies and improve livelihoods.
“For constituencies like mine in Ghana, the difference between a risk taken and an opportunity lost is a bridge built, a market connected, or a factory powered.”
Her intervention generated considerable discussion among delegates, many of whom agreed that Africa must diversify its financing sources while safeguarding debt sustainability, promoting transparency, and protecting the continent’s long-term economic interests.
The 2026 Africa Days Forum concluded with renewed calls for stronger and more balanced partnerships between Africa and the European Union, emphasizing sustainable investment, industrialisation, infrastructure development, and inclusive economic growth as essential pillars for the continent’s future.
Source: Felix NYAABA/ expressnewsghana.com
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