Africa Urged to Invest in Its Own Development to Overcome Economic Stagnation

In a compelling address at the 4th annual meeting of the Africa Sovereign Investors Forum in Abuja, Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, emphasized that Africa’s economic growth is hindered by the tendency to invest financial resources in developed economies rather than focusing on its own development.

Oramah highlighted that Africa holds significant capital, including approximately $400 billion in foreign exchange reserves, which is often kept abroad due to outdated neo-colonial beliefs that assets are safer outside the continent. He argued that the real challenge lies not in the absence of capital, but in its strategic deployment within Africa.

He pointed out that Africa’s Sovereign Wealth Funds, which manage over $100 billion in assets, frequently invest overseas, reinforcing a perception that African markets are too risky. Oramah called for these funds to evolve from conservative asset management to become proactive agents of structural transformation, mobilizing and investing capital within African markets.

Vice President Kashim Shettima echoed Oramah’s sentiments, urging African nations to enhance regional cooperation and leverage sovereign wealth funds for transformative development. He noted that these funds must transition from being mere fiscal buffers to key players in national and regional growth.

Finance Minister Wale Edun underscored the importance of the forum in mobilizing capital and fostering partnerships to support Africa’s transformation. Meanwhile, ASIF Chairman Mr. Obaid Amrane stressed the need for a reevaluation of how Africa mobilizes and deploys capital, particularly through sovereign wealth funds, to address infrastructure deficits and create jobs for the continent’s youth.

Shettima praised the Nigeria Sovereign Investment Authority for its commitment to local investments, particularly in renewable energy, healthcare, and agriculture, and welcomed the launch of the ASIF Investment Platform aimed at pooling resources for high-impact projects across Africa.

The discussions at the forum reflect a growing recognition of the need for Africa to harness its own financial resources to drive sustainable development and economic growth.