Former President Nana Addo Dankwa Akufo-Addo has called on African nations to bolster their financial institutions by allocating 30% of their sovereign reserves to continental development banks.
This move, he argued, would empower institutions like the African Export-Import Bank (Afreximbank) and the African Development Bank (AfDB) to better address Africa’s pressing development needs.
“The institutions we need to drive our development are not in our hands,” Akufo-Addo emphasized, stressing the importance of financial sovereignty. “If we don’t control our financial institutions, we cannot sustainably fund our development.”
Akufo-Addo lamented that many African countries deposit their reserves in foreign banks at negative interest rates while struggling to finance critical infrastructure projects at home. He urged leaders to take bold action, saying, “We have to put our mouth where our thoughts are. Let’s make the decisions that will enable us to resolve our problems. We can’t do it just by talking.”
He also criticized the delay in operationalising the African Central Bank, a proposal that’s been discussed for over two decades. “Institutions such as the African Central Bank, African Investment Bank, and African Monetary Fund are critical to achieving the continent’s financial autonomy and accelerating development,” he noted.
Former President Akufo-Addo highlighted Afreximbank’s recent support for Ghana, which received $750 million in financing when it had lost access to international capital markets, as an example of the importance of Africa-owned financial institutions.
