At Afreximbank meeting: Panellists urge African govts to seek long-term, cheap funding for development
Panellists at the Africa-Import-Export-Bank (Afreximbank) have called on African governments to negotiate long-term and cheap funding to support their economies.
They also suggested that governments in Africa must put in place policies to raise money locally to finance development projects.
According to them, long-term funding and mobilising resources locally would help reduce the growing debts of the respective African countries and give them a financial reprieve.
The programme was on the theme “United We Stand: Deploying AfriCaribbean Resources for Sustainable Development – Perspectives from Monetary Authorities”.
The Governor of the Bank of Ghana, Dr Ernest Addison, in his contribution, said poverty in Africa was a result of weak growth.
“Africa must create the environment that promotes growth and generates jobs,” he said.
Dr Addison said the respective African countries must put in place policies to enhance domestic revenue mobilisation to build strong buffers to withstand shocks.
He said increased local savings would help Africa raise funds locally to finance her development.
Dr Addison called for closer collaboration between Africa and the Caribbean, and suggested investment in Air and maritime transport to facilitate trade between the two regions.
The Minister of Finance of Egypt and Chairman of Afreximbank General Meeting in Accra, Mohammed Ahmed Mait, said the developed economies and international financial institutions must increase financial support to Africa to address poverty and climate change.
He said Africa needed long-term funding to address the development challenges facing the continent, particularly climate change, to promote growth and reduce poverty.
He said Africa lacked resources to tackle climate change and it was important for international financial institutions and developed economies to support Africa in that direction.
According to him, Africa bore the brunt of climate change, yet it was the least polluter of the environment.
Mr Maait entreated the African countries to develop innovative climate instruments and projects to raise capital.
The Governor of the Reserve Bank of Zimbabwe, Dr John P. Mangudya, for his part, called for stronger collaboration between African countries.
He said the resources of both Africa and the Caribbean must be “put in one basket” and deployed to address poverty and improve African societies.
He said the integration of the African economies and trade would facilitate growth and help address the development challenges facing the continent.
The Governor of the Central Bank of Barbados, Kevin Greenidge, stressed the need for long-term capital to finance development projects on the continent.
He also suggested African countries put in place Natural and Pandemic Clauses in their green bond issuance to help provide financial relief for them in the event of a disaster after issuing the bonds.
He said Barbados had put in their green bonds clauses which mandated the government to pay two years later any money raised in case there was a disaster after raising the fund.
The Former Minister of Finance, Union of Comoros, Mr Assoumany Aboudou, said strong institutions would be crucial for harnessing financial resources raised by the continent.
He said resources that were deployed on the continent and which had better institutional governance yielded better results.
“Africa in the past deployed a lot of funds on some development projects but did not provide any better outcome because of poor governance and leadership,” he stated.
BY DAVID ADADEVOH & KINGSLEY ASARE
