SPEAKING at the 30th Annual General Meetings of the African Export-Import Bank (Afreximbank) in Accra, Ghana’s President Nana Addo Dankwa Akufo-Addo underscored the crucial role of robust development financial institutions for Africa to achieve its growth objectives
President Akufo-Addo highlighted the undercapitalisation of Africa’s financial development institutions and stressed the need for proper capitalisation and effective coordination with the African Union (AU) to deliver effectively for the continent. Drawing attention to the substantial difference in capital between Afreximbank and banks like the China Exim Bank, he encouraged African countries and individuals to contribute to Afreximbank’s general capital initiative by subscribing to their allotted shares. Noting that a bank like the China Exim Bank had a capital of $54bn while Afreximbank had only $6bn, he urged African countries and Africans to contribute to Afreximbank’s general capital initiative by subscribing to their allotted shares.
Commending Afreximbank for its catalytic role in Africa, President Akufo-Addo urged the bank to enhance its credit rating with rating agencies to further improve its operations and consistently work for the benefit of Africa and the African Diaspora. He also pledged to advocate for Afreximbank’s admission to a special status at the AU, acknowledging its significant contributions to the continent.
President Akufo-Addo expressed appreciation for Afreximbank’s support to Ghana, citing their initial transaction with the Ghana Cocoa Board and their timely assistance through the Counter-Cyclical Liquidity Facility (COTRAFL). He emphasized the importance of having powerful financial institutions when dealing with global counterparts.
Addressing the audience, Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasised that the Bank was delivering on the blueprint established by the pioneers of the Organisation of African Unity (OAU) for Africa’s socio-economic transformation. He outlined key goals set by the pioneers, including establishing a free trade area, a Pan-African Payments and Clearing Union, a common external tariff, and a raw material price stabilization fund, among others.
Oramah highlighted significant achievements such as the establishment of the Pan-African Payment and Settlement System (PAPSS), which would facilitate intra-African trade in African currencies and save the continent billions of dollars. He also mentioned the success of the Intra-African Trade Fairs (IATF) organised by Afreximbank in partnership with the African Union, attracting numerous visitors and facilitating billions of dollars in deals.
The Afreximbank President noted the establishment of an integrated regional transit guarantee scheme to streamline the movement of goods across African borders. He stressed Afreximbank’s role in supporting the African Continental Free Trade Agreement (AfCFTA) and announced their plans to double disbursements to address the significant intra-African trade finance gap.
The opening ceremony of the Afreximbank Annual Meetings also featured speeches by Philip Davis, Prime Minister of The Bahamas and Chairman of CARICOM, as well as representatives of the African Union Commission and the African Regional Standards Organisation. The event, attended by political and business leaders, bankers, and trade finance practitioners, aims to foster collaboration and promote prosperity across Africa and the Caribbean.
