Africa must reject foreign economic models, embrace own solutions — Oramah

By Efe Onodjae Immediate past President and Chairman of the Board of Directors, African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has urged African countries to abandon the wholesale adoption of foreign economic models and develop home-grown solutions to achieve economic independence. Oramah, who spoke at the 20th Annual Lecture of the AELEX, themed ‘‘Global Shocks, Local Impact: Battle for Survival or Opportunities to Leapfrog and for Growth’’, held in Lagos, said Africa’s economic transformation depended on its ability to mobilise local capital, strengthen indigenous financial institutions and invest in industrialisation.

He argued that international best practices were often designed for the circumstances of other economies and should not automatically be adopted by African countries. “Best practice is always somebody’s practice, designed for somebody’s circumstances. Where it serves us, we adopt it. Where it does not, we must have the conviction to depart from it,” he said.

The former Afreximbank boss also said Africa’s political independence would remain incomplete without economic emancipation, noting that the continent must reduce its dependence on foreign financing and financial institutions. He expressed concern that between $350 billion and $500 billion in Africa’s foreign exchange reserves were held outside the continent, despite the difficulty African countries often face accessing credit from foreign financial institutions.

Oramah said Afreximbank mobilised more than $40 billion through its central bank deposit programme during his tenure, demonstrating the capacity of African institutions to manage substantial financial resources. He also called for increased investment in mineral processing, indigenous commercial banks and regional payment systems, stressing that Africa must derive value from its natural resources rather than remain an exporter of raw materials.

On regional integration, he described the Pan-African Payment and Settlement System as a major instrument for facilitating trade using African currencies, reducing transaction costs and strengthening economic cooperation. Responding to a question on Nigeria’s mining partnership with the United States and the geopolitical implications of foreign investments, Oramah urged Nigerian leaders to establish national priorities before choosing international partners.

He cautioned against allowing competition among global powers to dictate Africa’s economic direction. “If you run away from the Americans, the Chinese will wait for you. The Russians will wait for you. So what does that tell you? Have your own piece of hope,” he said.