Prez Akufo-Addo calls for enhanced African ownership of financial institutions to drive economic dev’t
In a passionate address at the 30th Annual Meeting of the African Export-Import Bank (Afreximbank) in Accra, President Akufo-Addo underscored the urgent need to strengthen African ownership of financial institutions as a pivotal step towards driving sustainable economic development on the continent.
With the theme “Delivering The Vision, Building Prosperity For Africans,” the four-day meeting served as a platform for key stakeholders to deliberate on strategies to bolster intra-African trade and overcome challenges posed by the global COVID-19 pandemic and geopolitical conflicts, particularly the Ukraine crisis.
President Akufo-Addo began his speech by emphasizing the critical role of robust financial institutions in spurring economic growth, stating unequivocally that, “The reality is that unless we have strong financial institutions, we are not going to develop.” Recognizing the limitations and risks associated with heavy reliance on foreign capital, the President stressed the imperative for Africa to nurture and fortify its own financial ecosystem to mitigate financial leakages, enhance domestic resource mobilization, and foster private sector development.
Drawing from decades of experience, President Akufo-Addo cautioned against the costly consequences of borrowing from external sources, including exorbitant interest rate payments and the erosion of local financial institutions. Highlighting the need for continuous development and relevance, he called for a gradual strengthening of African ownership in financial institutions, thereby empowering the continent to chart its own economic destiny.
The President outlined two key interventions to amplify the developmental impact of Africa’s financial wherewithal: capital infusion and effective coordination with the African Union (AU). Emphasizing the gravity of the situation, he reiterated that despite efforts by numerous African governments, development financial institutions across the continent remained severely undercapitalized. This dearth of capital posed a formidable challenge to their ability to catalyze economic growth and foster sustainable development.
Furthermore, President Akufo-Addo underscored the importance of effective coordination between African financial institutions and the AU. Collaborative efforts would ensure that development initiatives align with the AU’s overarching vision for Africa’s socio-economic transformation. By harmonizing objectives, strategies, and resource allocation, financial institutions could amplify their impact, expedite the achievement of developmental targets, and promote collective prosperity.
While acknowledging the formidable task ahead, President Akufo-Addo expressed his unwavering commitment to driving change and charting a new course for Africa’s financial landscape. He called on African governments, policymakers, and stakeholders to prioritize the strengthening of financial institutions, thus enabling the continent to break free from the shackles of dependence on foreign capital and to harness its own financial resources for sustainable development.
The President’s impassioned plea for enhanced African ownership of financial institutions resonated with the attendees of the Afreximbank Annual Meeting. As the event continued, participants engaged in robust discussions, exploring innovative strategies, and forging collaborations to strengthen financial institutions, boost intra-African trade, and unlock Africa’s full economic potential. With renewed commitment and concerted efforts, Africa stands poised to chart a new trajectory of economic independence and prosperity, underpinned by robust, African-owned financial institutions that serve as the bedrock of sustainable development.
