Building trust & solidarity in the global economy

Nigeria's President, Bola Tinubu's speech at the 78th UN General Assembly highlighted the urgent need for the global community to prioritize Africa's development, promote democratic governance, combat violent extremism, secure the continent's mineral-rich areas, and address the impact of climate change. To delve deeper into these critical topics, Bismarck Rewane, the CEO of Financial Derivatives, joined CNBC Africa for an insightful discussion. Rewane emphasized the necessity for African countries to adapt to the rapidly changing global financial landscape, driven by digital technology. He pointed out that the continent is facing challenges due to technological advancements that displace people and create structural unemployment. In light of this, he called for a tailored approach to support Africa's development, focusing on enhancing competitiveness and leveraging technology for mass education to equip the workforce with essential skills. Furthermore, discussing the key areas outlined in President Tinubu's speech, Rewane underscored the importance of sustainable growth for Africa. He emphasized the critical role of infrastructural development in fostering growth, highlighting the need for internal initiatives instead of relying solely on external support. He emphasized the significance of establishing a clear roadmap for development to attract global support, drawing on the successful model of Southeast Asia's self-driven growth. Addressing the recent visit of the US Deputy Treasury Secretary to Nigeria, Rewane stressed the importance of improving Nigeria's terms of trade to become a low-cost producer and integrate value chains more effectively. He highlighted the necessity of reforming Nigeria's economic framework to attract domestic and international investments, emphasizing the need for market attractiveness to address external imbalances. Regarding Nigeria's foreign exchange (FX) crisis, Rewane clarified that it is crucial for Nigeria to internally address economic and financial reforms to make its markets appealing to investors. He underscored that the US government's interest lies in Nigeria's stability and market attractiveness, rather than direct investment initiatives, emphasizing the need for structural reforms to stabilize the FX crisis. In light of the recent postponement of the Monetary Policy Committee (MPC) meeting by the Central Bank of Nigeria, citing the appointment of a new Central Bank Governor, Rewane expressed disappointment in the decision. He highlighted the importance of continuity and the need for the MPC meeting to proceed with the existing team overseeing the process. He warned that introducing uncertainties into the economic landscape could result in 'economic wear and tear' and emphasized the necessity of ensuring stability amid transitions. As Africa navigates through complex development challenges and seeks to attract support for growth, financial experts like Bismarck Rewane provide valuable insights into the strategic approaches required to foster sustainable development and economic stability in the region.