Strengthening African Multilateral Financial Institutions will play a key role in attracting capital for the region’s economic transformation.

The President of the African Export Import Bank, AFREXIMBank, Prof. Benedict Oramah, made this point as a keynote speaker at the 2023 lecture of the Chartered Institute of Bankers of  Nigeria (CIBN). 

He noted that capital is the basis upon which a viable economic transformation can be built and is critical for Africa’s socio-economic growth.

According to him “Africa Needs the Right Institutions to attract capital investments into the regional economy.” 

Prof. Benedict Oramah cited the example of AFREXIMBank that supported the African region with over $8bn during the COVID-19 pandemic, in 2020,to navigate the challenges underwriting $2bn for Johnson and Johnson vaccines into the continent.

Prior to 2020, he noted that AFREXIMBank made a significant intervention of $10bn in the period of 2015-2017 that prevented several African banks from defaulting due to the volatility of commodity prices. 

He added “Domestic economic policies are key to directing home grown capital to develop key sectors of the economy. This is why African indigenous development banks will play a key role in providing capital for economic transformation.”

Speaking further he emphasized the need for predictable fiscal and monetary policies across African economies to attract capital.

He reiterated the commitment of AFREXIMBank to supporting African financial institutions which has led to the expansion of the credit and service offerings of over $8bn targeting 500 of the 600 regulated banks in the region.

The Chairman of the event Mr. Adedotun Sulaiman acknowledged that the Paucity of capital remains a major challenge affecting the continent of Africa. He believed the 2023 CIBN lecture was apt and should provide ways to explore the power of capital in unlocking Africa’s economic transformation.

In his opening remarks the President of the Chartered Institute of Bankers in Nigeria, CIBN Dr. Ken Opara described the AFREXIM Bank as a significant institution that has contributed immensely to the growth and development of the banking and financial services industry in the region.

He particularly commended the AFREXIM Bank for initiating and executing the Africa Quality Assurance Centre in Ogun State, Nigeria which will boost the quality of export products.

The CIBN decried the fact that despite enormous natural and human capital resources, Africa was still ridden with poverty. He advocated for increased trade and finance collaboration within the region to boost economic activities. 

He also made a case for investments in education, skills and entrepreneurship which will transform the region.

Highlights of the event was the signing of the Memorandum of Understanding between the AFREXIMBank and the CIBN in capacity building and certifications for trade and finance in the region.