By Zainab.joaque@awokonewspapersl.com
Freetown, SIERRA LEONE, July 3rd, 2025 – A powerful chorus of voices echoed through the halls of the Afreximbank Annual Meetings, calling for stronger African multilateral financial institutions in the face of rising global instability and economic pressure.
In a high-profile panel moderated by Prof. Emmanuel Akyeampong, former African and Caribbean heads of state took the stage, sharing lessons learned from years of leading through debt crises, structural reform, and development challenges. Nigeria’s Olusegun Obasanjo, Ethiopia’s Hailemariam Desalegn, Senegal’s Macky Sall, Ghana’s Nana Akufo-Addo, Niger’s Mahamadou Issoufou, and Jamaica’s P.J. Patterson all brought unique perspectives, united by a shared vision: Africa must control its own financial future.
Chief Olusegun Obasanjo opened the session with a blunt recollection of inheriting Nigeria’s economy in 1999. “The coffers were below empty,” he said, describing the staggering $3.5 billion Nigeria was paying annually in debt service—with little reduction in the principal due to compounding interest.
To free his country from the debt trap, Obasanjo pursued a six-year campaign for debt relief. But he warned, even with financial assistance, mismanagement and corruption often block progress. “Corruption is a strange bedfellow with development,” he said, emphasizing that discipline, transparency, and sound policy are crucial to ensuring that borrowed funds reach their intended targets.
Former Prime Minister Hailemariam Desalegn of Ethiopia echoed Obasanjo’s call for domestic discipline, pointing to Ethiopia’s successful financing of the Grand Renaissance Dam—a $5 billion project—using largely local resources. “We mobilized our finances mainly from domestic sources,” he noted, highlighting the role of national banks and the focus on long-term investments.
While China’s support for infrastructure was acknowledged, Hailemariam warned against dependency on external aid. “Africa must stop depending on promises of aid that never come,” he stressed, urging the creation of African credit rating agencies that understand local contexts.
Speaking in French, former Senegalese President Macky Sall emphasized the need for African economies to modernize, expand electricity access, and digitalize. He championed the role of African institutions like the AfDB and Afreximbank in closing financing gaps created by a biased global financial architecture.
From the Caribbean, P.J. Patterson, Jamaica’s former Prime Minister, reminded the audience that Africa and its diaspora must stand together to rewrite the rules of global finance. “We must chart our own economic strategies—not copy models built for others,” he urged, highlighting the persistent imbalance in institutions like the IMF and World Bank.
Current leaders added urgency to the conversation. Malawi’s President Lazarus Chakwera called for a paradigm shift from exporting raw materials to processing them locally. “Trade must replace aid—but not trade in raw materials. We must trade in value-added goods made in Africa,” he said, citing Malawi’s focus on agro-commercialization and beneficiation of minerals like titanium and graphite.
Ghana’s President Nana Akufo-Addo and Niger’s former leader Mahamadou Issoufou threw their weight behind the African Continental Free Trade Area (AfCFTA) as a game-changer for intra-African and Africa-Caribbean trade. Akufo-Addo lamented the undercapitalization of Africa’s financial institutions, comparing Afreximbank’s $6 billion to China’s Exim Bank’s $54 billion.
“If we’re serious about development,” he urged, “African countries must deposit at least 30% of their sovereign reserves in African multilateral institutions—rather than foreign banks.” He also called for immediate steps to operationalize long-stalled proposals like the African Central Bank and African Monetary Fund.
As the session concluded, discussions turned to innovation. Caribbean leaders advocated for a digital or virtual currency to ease trade with Africa, while others emphasized currency harmonization and deeper financial integration.
Tanzania’s Vice President, Dr. Philip Mpango, offered a final rallying cry: for regional infrastructure, macroeconomic resilience, and bold investment in Africa’s youth.
The message across the board was clear: Africa must stop looking outward for solutions and start building institutions that reflect its own realities and aspirations. In a world increasingly defined by division and uncertainty, unity, self-reliance, and bold reforms are the keys to Africa’s economic liberation. ZIJ/3/7/2025
