Addis Ababa — The Grand Ethiopian Renaissance Dam (GERD) stands as a prime example of successful domestic resource mobilization, according to Marry Ghenna, a researcher and coordination consultant at Development Reimagined.
In an exclusive interview with ENA, the researcher and coordination consultant noted that GERD demonstrates how a nation can effectively fund major development projects internally, a significant achievement given the challenges many African countries face in accessing affordable and equitable finance.
"The GERD is a great case in how a country can mobilize domestic resources effectively," she stated, pointing out that innovative approaches such as engaging the diaspora, introducing strategic tax incentives, and exploring diverse funding mechanisms can achieve this.
Ethiopia's flagship infrastructure project was built entirely through domestic financing, mobilized via bond sales, donations, SMS campaigns, and various community-led initiatives.
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Marry further emphasized that this community involvement reinforces the purpose of domestic finance and encourages transparency in collection policies for both the private sector and the government.
Beyond generating funds, this approach strengthens domestic finance collection systems, supports national development priorities, and builds public trust and ownership in large-scale projects like the GERD, she elaborated.
According to the researcher and coordination consultant, African nations still face barriers to obtaining fair credit ratings and concessional loans needed for sustainable growth.
She contends that the issue is not "too much debt," but rather the lack of access to cheap and affordable debt.
Marry pointed to the African Credit Rating Agency as an important initiative to address inequities by providing a fairer evaluation of African economies.
Also, she called for data-driven discussions among policymakers, stating that a lack of reliable statistics often hinders practical solutions.
On the other hand, Sahrawi Republic Ambassador to Ethiopia, Lamine Baali, believes that collective negotiations to secure fairer terms and flexibility from international creditors.
"Access to finance for development or debt for growth must be made easier for all African Union member states," he stressed, calling for equal, fair, and transparent treatment regarding debt services.
He emphasized that solidarity, equality, and sustainability must guide Africa's approach to development financing to secure maximum collective benefit.
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