Abuja: Ghana's former President Nana Addo Dankwa Akufo-Addo has proposed that African countries deposit 30 per cent of their sovereign reserves with multilateral institutions on the continent. The proposal aims to better position development finance institutions like the African Export-Import Bank (Afreximbank) and the African Development Bank (AfDB) to meet the continent's development financing needs.
According to Ghana News Agency, the proposal is a reiteration of an idea Akufo-Addo presented to the African Union (AU) during his tenure as Ghana's President and as a champion of the African Continental Free Trade Area (AfCFTA), which Secretariat is hosted by Ghana. Speaking at the 2025 Afreximbank Annual Meetings in Nigeria, Akufo-Addo emphasized that this move could significantly transform Africa's financial landscape.
He pointed out that African nations are currently holding their reserves in foreign banks, often earning negative interest rates while struggling to finance their development projects. Akufo-Addo stressed that the continent needs to control its financial institutions to effectively and sustainably finance its development.
Akufo-Addo urged collaborative efforts to strengthen institutions like Afreximbank and AfDB, advocating for decisive actions to resolve the continent's financial issues. He also highlighted the lack of progress in establishing the proposed African Central Bank, which has been under discussion for 20 years, despite its potential to synchronize regional banking industries and contribute to Africa's development.
He called for renewed efforts to operationalize the African Central Bank, African Investment Bank, and African Monetary Fund to enhance the continent's financial independence and development acceleration. Citing Afreximbank's support for Ghana, Akufo-Addo noted the institution's assistance with a US$750 million loan when the country could not access global capital markets.
