Cardoso Calls for African-Led Economic Renaissance

Governor Olayemi Cardoso of the Central Bank of Nigeria has urged African leaders, financial institutions, and the diaspora to embrace a development strategy that is “African-led and African-owned” in order to enhance decades of economic resilience and strengthen independence from external shocks. This call was made during the 32nd Annual Meeting of the African Export-Import Bank (Afreximbank) in Abuja, which was themed “Building the Future on Decades of Resilience”.

Highlights from Cardoso’s Speech

●     Growth of Afreximbank: Cardoso praised Afreximbank’s transformation from a modest start with a $750 million capital base to a significant continental financial institution boasting over $40 billion in capital assets.

●     Importance of African Institutions: He highlighted the critical role of African institutions in promoting intra-continental trade, countercyclical finance, and regional economic integration.

●     Engineering Resilience and Preparedness: Cardoso pointed out that resilience is a product of deliberate engineering rather than chance, advocating for strategic foresight, crisis preparedness, and the establishment of robust systems to create enduring institutions.

●     Nigeria’s Participation: As a founding member and the largest single beneficiary of Afreximbank, Nigeria has secured approximately $52 billion in trade and project financing.

Africa is confronted with considerable challenges, including a significant trade finance deficit of $120 billion, which hampers the continent’s trade capabilities. This deficit arises from structural limitations and systemic biases in ratings that impact African financial institutions. Additionally, increasing trade protectionism, global economic fragmentation, and evolving geopolitical dynamics jeopardize Africa’s developmental opportunities and threaten the coherence of the international ecosystem.

Establishing Institutional Credibility

To tackle these challenges, Cardoso highlighted the necessity of establishing institutional credibility through reforms and stability. The Central Bank of Nigeria has concentrated on restoring trust with markets, citizens, and partners, acknowledging that institutional credibility serves as the foundation for effective monetary and financial policy. A long-term perspective, transparency, and trust among stakeholders are crucial, particularly during unstable periods. African leaders and financial institutions must collaborate to create a resilient and sustainable economic future. By adopting an “African-led and African-owned” development strategy, the continent can diminish its susceptibility to external shocks and attain enduring growth and prosperity. With institutions like Afreximbank playing a pivotal role, Africa can realize its full potential and emerge as a proactive participant in shaping the global financial landscape.