Africa must integrate before pursuing a common currency, says Access Bank chair Aig-Imoukhuede.
Aigboje Aig-Imoukhuede, chairman of Nigerian tier-1 lender Access Bank Group and financial services holding company Coronation Group, argues that African financial institutions must move beyond financial stability to productive finance, unlock capital tied up in commercial transactions and build banking systems capable of operating across borders.
Africa’s financial institutions have spent years debating the availability and cost of capital.
Aig-Imoukhuede believes the continent is asking the wrong question.
Rather than focusing primarily on how much capital Africa can attract, he wants policymakers and financial institutions to examine how effectively the money already available is being deployed. “At this particular moment in Africa’s development, I believe the more important question is: How do we make better use of the capital we already have?” he said during the closing session of the Africa Financial Industry Summit (AFIS) in Luanda, Angola. His argument is that the continent’s financial systems must become better at connecting existing capital to businesses, productive economic activity and long-term investments. Without that shift, financial stability and stronger banking institutions may not translate into the broader economic prosperity Africa needs.
MSEApp News is publishing an original rewrite of this tip for readers, based on reporting associated with TechCabal.