Africa Cannot Depend Forever on External Financing, ECA Chief Says
Addis Ababa, July 28, 2026 (FMC) — Africa cannot continue relying on external financing to achieve its development ambitions and must strengthen domestic resource mobilization to drive its economic transformation, United Nations Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA) Claver Gatete said.
Addressing the 49th Ordinary Session of the African Union Executive Council in Addis Ababa on Tuesday, Gatete said the continent is navigating a challenging global environment marked by geopolitical tensions, conflicts, climate shocks, declining development finance and rising debt pressures.
He stressed that Africa must finance more of its development from within by strengthening tax systems, expanding domestic capital markets, combating illicit financial flows and developing innovative financing mechanisms.
Gatete said ECA is working with African countries to build stronger fiscal institutions and support financing frameworks that keep African savings and investments on the continent to support infrastructure, industrialization and innovation.
Highlighting the importance of the AU’s 2026 Theme of the Year on water and sanitation, he said water security is fundamental to Africa’s development, affecting agriculture, energy, public health, industrial growth and climate resilience.
He noted that millions of Africans still lack access to basic water and safely managed sanitation services, undermining health, productivity and progress toward the goals of Agenda 2063.
The ECA chief called for an integrated approach linking water security with agriculture, energy, industrialization, climate action and urban development, saying Africa’s interconnected challenges require coordinated solutions.
He also emphasized the need to accelerate implementation of the African Continental Free Trade Area (AfCFTA), strengthen regional value chains and invest in digital infrastructure, data systems and human capital to build resilient economies.
Despite challenges, Gatete said Africa has major advantages, including abundant renewable energy resources, a young population, a market of more than 1.5 billion people under AfCFTA and strategic minerals essential to the global energy transition.
He further highlighted Ethiopia’s hosting of COP32 in Addis Ababa in 2027 as an opportunity for Africa to demonstrate that climate ambitions must be matched with implementation, accessible financing and practical solutions.
Gatete reaffirmed ECA’s commitment to supporting the African Union and member states through policy support, technical expertise and partnerships to accelerate the implementation of Agenda 2063 and the Sustainable Development Goals.