Oramah: Africa’s $500bn Reserves Trapped Abroad Despite Funding Crisis.
Benedict Oramah, has urged African leaders to reclaim control of the continent’s financial resources, warning that up to $500 billion in Former President of the African Export-Import Bank (Afreximbank), Prof.
Oramah said Africa’s foreign reserves were estimated at between $350 billion and $500 billion, with most held in non-African banks.
He noted that African countries could be denied credit by the same institutions holding their funds, citing compliance and country-risk concerns.
He spoke last Wednesday at the 20th AELEX Annual Lecture at the Nigerian Institute of International Affairs, Lagos, where he called for home-grown economic solutions, and less dependence on foreign financing and imported economic models. Citing Asia’s response to the 1997–1998 financial crisis, Oramah pointed to the Chiang Mai Initiative, a regional financial safety net established by ASEAN countries, China, Japan and South Korea, with about $240 billion in financing capacity. He urged African countries to strengthen indigenous financial institutions, expand local-currency financing, and retain more capital within the continent. Oramah also advocated wider use of the Pan-African Payment and Settlement System (PAPSS) to facilitate trade in African currencies, reduce transaction costs and deepen regional integration.
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