President Akufo-Addo has appealed to African Heads of State and governments to consider investing up to thirty percent (30%) of their foreign sovereign reserves in African financial institutions.
Currently, all African countries invest one hundred percent (100%) of their foreign sovereign reserves in financial institutions outside Africa, but these investments yield little to no profits.
President Akufo-Addo made the call at the 37th Ordinary Session of the Assembly of Heads of State of the African Union (AU), urging African leaders to strengthen the continent’s financial and multilateral establishments. He also proposed that an annual African economic summit be institutionalized to focus on finding strategic solutions to the continent’s financial challenges.
In his address, President Akufo-Addo emphasized the need for Africa to support its own development, stating, “It is time for the African people to look inward and to support themselves to develop.” He urged African leaders to invest in African multilateral institutions such as the AfDB and Afreximbank to strengthen their balance sheets and capacity to facilitate more resources for Africa’s development.
President William Ruto of Kenya showed his support for President Akufo-Addo’s proposals, emphasizing that these steps are essential for the African continent to leapfrog to the next level of development.
At the same event, President Akufo-Addo, President William Ruto, and Zambian President, Hakainde Hichilema, joined seven heads of leading African multilateral financial institutions to launch the Alliance of African Multilateral Financial Institutions (AAMFI) also known as ‘The Africa Club.’
The AAMFI is an alliance of treaty-based African-owned and controlled African Multilateral Financial Institutions (AMFI), aiming to advocate for AMFIs’ role in promoting and protecting the interests of their African member states in global finance. Its objectives include promoting collaboration, cooperation, and coordination among members to address Africa’s development finance needs and advocating for Africa’s interests on global finance issues.
President Akufo-Addo plans to invite the African Union and all heads of state to adopt the outcome document of the 2024 Africa Prosperity Dialogues (APD 2024) and to implement its recommendations, especially those related to achieving interoperability on the African continent.
President Akufo-Addo’s proposals and the launch of AAMFI signal a collective effort by African leaders and financial institutions to strengthen Africa’s financial standing and support sustainable development on the continent.
