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For the continent to achieve its growth objectives, it needs to have strong African financial institutions to support its economic development.
Ghana President, Nana Addo Dankwa Akufo-Addo, said this on Monday when he opened the 30th edition of African Export-Import Bank (Afreximbank) Annual Meetings in Accra.
Akufo-Addo stated that Africa’s financial development institutions had remained highly undercapitalised, making it difficult for them to fund massive projects.
He said it was critical for those financial institutions to be properly capitalised in order for them to have an effective coordination with African Union (AU).
This will enable them deliver on continental projects effectively.
“When dealing with powerful global financial institutions, it is important to have your own powerful financial institutions,” Akufo-Addo said.
He, therefore, urged African countries to contribute to Afreximbank’s General capital initiative by subscribing to their allotted shares.
The President cited the China Eximbank which had a capital of US$54 billion, while Afreximbank had only US$6 billion.
He commended Afreximbank for its catalytic role in Africa and urged them to further improve its rating with credit rating agencies.
This, he said would enhance its operations and be able to work consistently for Africa and the African Diaspora.
He pledged to work for Afreximbank to be admitted to a special status at the AU in recognition of its role and contributions to the continent.
Akufo-Addo described the AAM2023 as a truly intercontinental event with the participation of several Caribbean countries that had become full members of the Bank following the signing of partnerships agreements with the institution.
The President further welcomed the Bank’s support for Ghana, noting that its first transaction was with the Ghana Cocoa Board and that, beyond that, Afreximbank had provided timely support to Ghana through its Counter-Cyclical Liquidity Facility (COTRAFL), which it had put together at a time when global financial institutions were exiting Africa.
Albert Muchanga, the AU Commissioner for Economic Development, Trade, Industry and Mining, speaking on behalf of Musa Faki Mahamat, Chairman of the African Union Commission, congratulated Afreximbank on its 30 year’s anniversary.
Muchanga and said that the AU was a great friend and supporter of all African financial institutions.
He commended Afreximbank for its role in pioneering a relationship with the Caribbean countries and said that Africa would still have to go deeper in its integration with the Caribbean.
Earlier, Ken Ofori-Atta, Minister of Finance of Ghana, noted that in its 30 years, Afreximbank had made significant contributions in building prosperity for all Africans.
He commended the Bank and its President for the decisive role it had played in supporting African countries during the COVID-19 pandemic, including making available US$7 billion to help address COVID-19 related challenges and setting up the African Vaccine Acquisition Trust.
AAM2023, which ends on 21 June, is being attended by political and business leaders, bankers and other trade and trade finance practitioners from across Africa and beyond, including leaders of several member countries of the Caribbean Community.
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