Advancing Africa’s economic development

Business leaders and financial sector stakeholders recently gathered in Accra, Ghana for the Afrieximbank Annual Meetings, where discussions centered around advancing Africa's economic development. CNBC Africa had the opportunity to speak with Carlos Lopes, Honorary Professor at the Nelson Mandela School of Public Governance, to gain insights into the progress and challenges facing the continent. The conversation delved into the ambitious plans outlined in the Abuja Treaty of 1991, which set the stage for the continental free trade area. Lopes highlighted the importance of not just creating a free trade area on paper, but also providing the necessary tools and instruments to facilitate cross-border transactions and protect against potential losses. Afrieximbank, as a key institution, has been instrumental in developing payment systems, establishing an observatory for shared learning, and implementing mechanisms to safeguard trade ventures. One notable achievement emphasized by Lopes was the allocation of three billion dollars towards these initiatives, underscoring the organization's ambition and vision for Africa's economic future. The conversation also touched upon the need to support Pan-African institutions and encourage local savings to invest in regional development projects. Lopes noted a lack of enthusiasm among central bank governors to channel reserves into African institutions, despite the strong performance demonstrated by multilateral development banks in the region. Additionally, the urgency of accelerating the pace of integration under the continental trade pact was highlighted, with Lopes pointing out that Africa is making progress comparable to other regions, albeit facing challenges posed by the COVID-19 pandemic and global economic uncertainties. Despite these hurdles, there remains a sense of political will among African leaders to address pressing issues such as access to healthcare, climate change, and food security. Lopes stressed the importance of translating policy commitments into tangible actions that deliver immediate impact. The discussion also touched upon the critical role of payment systems in enhancing trade facilitation and addressing currency volatility. Lopes expressed some frustration at the slow pace of adoption of these systems, calling for expedited efforts to support cross-border transactions. As the Afrieximbank Annual Meetings concluded in Accra, participants reflected on the appetite among Africans to engage in discussions around reforming the international financial architecture. The event served as a platform for showcasing innovative approaches and signaling a shift towards a more inclusive and sustainable economic future for the continent.