Ghana President Seeks Robust African Financial Institution

In his address at the 30th Annual General Meeting (AGM) of the African Export-Import Bank (Afreximbank), President Nana Akufo-Addo of Ghana has emphasized the need for a strong development financial institution to support Africa’s growth objectives. Akufo-Addo highlighted that Africa’s financial institutions have remained undercapitalized and called for proper capitalization and effective coordination with the African Union (AU) to deliver effective results for the continent.

Drawing a comparison, Akufo-Addo pointed out that while the China Exim Bank possesses a capital of $54 billion, Afreximbank’s capital amounts to only $6 billion. He urged African countries and individuals to contribute to Afreximbank’s general capital initiative by subscribing to their allotted shares.

Akufo-Addo emphasized the importance of Afreximbank’s rating with credit rating agencies, stating that an improved rating would enhance the bank’s operations and enable it to consistently serve Africa and the African Diaspora.

President and chairman of Afreximbank, Prof. Benedict Oramah, acknowledged the bank’s commitment to fulfilling the goals laid out by the pioneers of the Organization of African Unity (OAU) for Africa’s socio-economic transformation. Oramah highlighted achievements such as the establishment of the Pan-African Payment and Settlement System (PAPSS), which will save the continent $5 billion in intra-African transfer charges and facilitate payments for intra-African trade in African currencies.

Oramah also recognized the significance of the African Continental Free Trade Agreement (AfCFTA) and emphasized the need for a financial backbone to make the agreement work for Africa. To bridge the intra-African trade finance gap, Afreximbank has disbursed over $20 billion from 2016 to 2021 and aims to double those disbursements to $40 billion in the five years leading up to 2026.

The efforts and initiatives discussed during the AGM reflect the collective commitment to strengthening Africa’s financial institutions and fostering economic integration for the continent’s sustainable development and prosperity.