Afreximbank President Urges African Leaders to Secure Better IMF Terms
The President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has called on African leaders to negotiate more favorable conditions when engaging with the International Monetary Fund (IMF).
Speaking at the launch of the Alliance of African Multilateral Financial Institutions in Accra, Prof. Oramah emphasized the importance of leveraging Africa’s membership in the IMF to secure better treatment and benefits.
Demanding Equal Treatment
Prof. Oramah underscored the need for African countries to be treated on par with their European and Asian counterparts.
“It’s either you go there or quit. Because we are members of the IMF. The only problem is that when they go, they must make sure that they treat us the way they treat the European or Asian countries. I think that’s what we have to demand,” he stated.
He further pointed out the disparity in the IMF’s quota system, noting that Africa, with 17% of the world’s population, only holds a 5% quota in the institution.
“We cannot have a continent with a 17 percent population of the world and have a five percent quota of an institution that has to bring stability in the micro-economies of these countries. They must know that African countries are members and not outsiders. We shouldn’t expect anybody to dictate for us,” he stressed.
Establishing an African Credit Rating Agency
Prof. Oramah advocated for the establishment of an African Credit Rating Agency, highlighting it as a crucial step toward intra-continental integration and enhancing access to global financial markets.
“It is institutions like ours that can force the IMF to recognize an African rating agency. When we go to China and Japan, they tell us to go to their own agencies to be rated, but for us, when we always want to issue papers, we have to be rated by Fitch and others. We are just doing ourselves ill, so charity begins at home. We need to do it,” he said.
Alliance of African Multilateral Institutions
The newly launched Alliance of African Multilateral Financial Institutions aims to foster collaboration and exchange information on joint strategies and frameworks to address Africa’s development needs. It will also promote and defend unified positions on issues of common interest in international fora, advocating for Africa’s interests in global finance matters.
Prof. Oramah’s remarks underscore the critical need for African countries to assert their position within global financial institutions and work collectively to create a more equitable financial landscape.
