By George Ozalla
Speaking yesterday at the ongoing Afreximbank Annual General Meeting at the Transcorp event center in Abuja, former President Olusegun Obasanjo expressed concern over Africa’s stunted growth trajectory, attributing it to poor leadership and corruption. Obasanjo who emphasized the need for African countries to collaborate to realize their economic aspirations.
According to Obasanjo, Africa’s leading economies, including Nigeria, Egypt, Ethiopia, Democratic Republic of Congo (DRC), and South Africa, must first grow as expected before helping weaker economies such as Morocco, Kenya, and Senegal to grow. He stressed that economic prosperity cannot be achieved in isolation and that stronger economies need to pull weaker ones along to achieve all inclusive growth and development.
He applauded the African Continental Free Trade Area (AfCFTA) agreement as a game-changer for the continent, noting its ability to facilitate intra-Africa trade. The former President of Nigeria also commended Afreximbank for its initiatives to evolve an African payment system that will encourage trade within the continent and reduce reliance on the dollar and other major currencies.
The former president specifically lauded Professor Benedict Okey Oramah, the President and Chairman of the Board of Directors of Afreximbank, for his leadership and vision in turning things around in the bank. Obasanjo pointed that under Oramah’s leadership, Afreximbank has made significant strides in promoting African trade and economic development.
However, Obasanjo decried that Africa’s growth has been stunted over time, with some countries recording positive growth rates only to backslide later. He attributed this to waste and corruption, which he said could continue to hinder growth and development on the continent.
Obasanjo critically questioned why Africa cannot achieve food security, noting that food sufficiency can unlock $40 billion annually for the continent. He cited Ethiopia’s transformation from a food-deficit country to a net exporter of wheat as an example that can be replicated across Africa.
He called for a review of current democratic principles in Africa, recommending a return to communal ideologies that promote collective progress.
Obasanjo expressed deep concern that Africa’s dependence on external assistance is unsustainable. “We can’t expect the world to give us what the world can’t give,” he said, adding that there must be a substitute for aid. “We won’t get it right that way,” he reaffirmed.
According to recent statistics, African countries have borrowed over $200 billion from the Western world, with some of the largest borrowers including Nigeria, South Africa, and Egypt. Nigeria alone has borrowed $22.7 billion from the IMF and $13.4 billion from the World Bank, while South Africa has borrowed $10.8 billion from the IMF and $4.8 billion from the World Bank. Egypt has borrowed $12.8 billion from the IMF and $5.5 billion from the World Bank. Additionally, Africa receives billions of dollars in foreign aid each year, with the United States alone providing over $10 billion in aid to the continent in 2022.
With this alarming reality the need for African countries to take charge of their economic destiny and work collectively to achieve sustainable growth and development. The continent, no doubt has continued to grapple with the challenges of poverty, inequality, and underdevelopment. A new approach that prioritizes self-reliance, good governance structure, prudence, good fiscal policy and regional cooperation will all enhance increased growth and development on the African continent.
