President Nana Akufo-Addo of Ghana has called for strong financial institutions to enable the African continent achieve its growth objectives.

A statement issued by Brandcomms Agency, a PR firm, in Abuja on Tuesday, said Mr Akufo-Addo made the call during the opening of the 30th annual general meetings of the African Export-Import Bank (Afreximbank) in Accra.

The statement said that Mr Akufo-Addo told participants at the meetings that Africa’s financial development institutions had remained highly undercapitalised.

He said the institutions needed to be properly capitalised and have coordination with the African Union (AU) to deliver effectively for the continent.

Akufo-Addo urged African countries and Africans to contribute to Afreximbank’s general capital initiative by subscribing to its allotted shares.

The president commended Afreximbank for its catalytic role in Africa and urged it to further improve its rating with credit rating agencies.

“This will enhance the bank’s operations and help it work consistently for Africa and the African Diaspora.”

Mr Akufo-Addo pledged to work for Afreximbank to be admitted to a special status at the AU in recognition of its role and contributions to the continent.

He said the meetings were truly an intercontinental event with the participation of several Caribbean countries that had become full bank members following the signing of partnership agreements with the institution.

The president welcomed the bank’s support for Ghana, noting its timely support through its Counter-Cyclical Liquidity Facility at a time when global financial institutions were exiting Africa.

“When dealing with powerful global financial institutions, it is important to have your own powerful financial institutions,” he said.

The statement also quoted Benedict Oramah, president and chairman of the board of directors, Afreximbank, as saying that the bank was delivering on the blueprint laid out by the pioneers for Africa’s socio-economic transformation.

“For sixty years, this well-articulated road map remained a map and gathered dust, but thanks to the vision of African leaders who founded Afreximbank 30 years ago.

“One by one, they are being delivered within the framework of team Africa, comprising the African Union and its agencies, the African Continental Free Trade Area (AfCFTA) secretariat, and Afreximbank as the underpinning banker.

“Today, the Pan-African Payment and Settlement System (PAPSS) is up and running, which will save the continent five billion dollars in intra-African transfer changes.

“It will also expedite and enable payments for intra-African trade in African currencies,” Mr Oramah said.

He said that soonest, all intra-African payments would be domesticated and would also be extended to the Caribbean Community and Common Market (CARICOM).

He said the association of CARICOM Central Banks adopted PAPSS a few days ago as its preferred payment infrastructure for a pilot project.

“By this singular move, we are one step closer to a full integration of African and CARICOM economies,” he said.

Mr Oramah said because Africa had Afreximbank, an integrated regional transit guarantee scheme for the continent had been birthed to ease the movement of goods across the 110 borders that divide Africa.

He said that under the scheme, goods could move across multiple African borders under one transit bond, significantly reducing border delays and transit costs.

Mr Oramah also said that Afreximbank’s existence would give the AfCFTA the best chance of success, which would fulfill another key aspiration of the continent’s founding leaders.

He said Afreximbank and the AfCFTA secretariat had established the AfCFTA Adjustment Fund to, among others, compensate eligible countries for tariff revenue losses arising from the new trade regime.

Philip Davis, Prime Minister of The Bahamas and chairman of CARICOM, said African countries and the Caribbean shared similar challenges but had not been maximising the hands dealt them by geography.

Mr Davis said that the new linkages between Afreximbank and the Caribbean represented a strong testament to the shared goal of pan-African prosperity.

(NAN)