President Nana Addo Dankwa Akufo-Addo has advocated that African-owned financial institutions should be strengthened for efficiency and service provision.

According to him, Africa cannot develop on its own unless financial institutions are given the necessary support to become self-reliant.

Speaking at the 30th Afreximbank Annual Meetings held in Accra from June 18 to 21, President Akufo-Addo explained that, “the reality is that unless we have strong financial institutions we are not going to develop. As we have learned over the past decades, relying on foreign capital is both risky and costly.

“It has resulted in huge financial leakages through the high cost of defaulting in borrowing and interest rate payments and undermines the growth of our financial institutions, domestic resource mobilization, and private sector development through the cost of funds,” he continued.

“The ownership of our financial institutions should be strengthened over time to enhance continuously, development and relevance.

He highlighted two interventions which he believes are important to strengthen the developmental impact of financial institutions.

These, according him include; capital and effective coordination with the African Union.

“Regarding the first set of interventions capital, I want to reiterate that despite consistent efforts made by many African governments including during extremely difficult macroeconomic and global operating environments, our development financial institutions remain highly undercapitalized,” President Akufo Addo explained.



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