Africa needs reliable financial institutions – Akufo-Addo

During the Afreximbank Annual Meetings (AAM2023) held in Accra to celebrate the bank’s 30th anniversary, President Nana Addo Dankwa Akufo-Addo emphasised the importance of strong development financial institutions for Africa’s growth objectives.

President Akufo-Addo highlighted that Africa’s financial development institutions have been undercapitalised and stressed the need for proper capitalisation and effective coordination with the African Union (AU) to ensure their effectiveness in delivering for the continent.

Drawing a comparison between the capitalization of China Exim Bank at $54 billion and Afreximbank at $6 billion, he encouraged African countries and individuals to contribute to Afreximbank’s general capital initiative by subscribing to allotted shares.

President Akufo-Addo commended Afreximbank for its catalytic role in Africa and urged the bank to enhance its credit rating with agencies to improve its operations and consistently support Africa and the African Diaspora.

He pledged to work towards granting Afreximbank a special status at the AU as recognition of its contributions to the continent. He also acknowledged the participation of several Caribbean countries as full members following partnership agreements with Afreximbank, making AAM2023 an intercontinental event.

President Akufo-Addo expressed gratitude for Afreximbank’s support to Ghana, including its first transaction with the Ghana Cocoa Board and timely assistance through the Counter-Cyclical Liquidity Facility (COTRAFL) during a period when global financial institutions were withdrawing from Africa.

In his address, Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated that the bank is delivering on the goals set by the pioneers of the Organization of African Unity (OAU) for Africa’s socio-economic transformation.

He highlighted achievements such as the establishment of the Pan-African Payment and Settlement System (PAPSS), which facilitates intra-African trade in African currencies and saves the continent $5 billion in transfer charges. Prof Oramah also mentioned the successful organization of the biennial Intra-African Trade Fairs (IATF) in partnership with the African Union and the AfCFTA Secretariat, which attracted significant deals and visitors.

The establishment of an integrated regional transit guarantee scheme to facilitate the movement of goods across African borders was also highlighted as a significant achievement. Prof Oramah emphasised the importance of Afreximbank’s existence in supporting the African Continental Free Trade Agreement (AfCFTA) and addressing the trade finance gap in intra-African trade.

The opening ceremony featured speeches by Philip Davis, Prime Minister of The Bahamas and Chairman of CARICOM, Assoumany Aboudou Salam, Special Adviser to the President of Comoros, and Albert Muchanga, AU Commissioner for Economic Development, Trade, Industry, and Mining, among others.

The AAM2023, attended by political and business leaders, bankers, and trade finance practitioners, aims to foster discussions on Africa’s economic development and integration, with the participation of Caribbean member countries.