President Akufo-Addo of Ghana has called for a significant shift in the management of sovereign reserves, advocating for at least 30% of all public funds and assets held in foreign banks to be withdrawn and deposited in African financial institutions. Speaking at the Presidential Dialogue on African Union Financial Institutions during the 37th African Union summit in Addis Ababa, Ethiopia, President Akufo-Addo emphasized the need for African states to reclaim control over their financial resources to foster development on the continent.
Highlighting the current trend of African countries storing sovereign reserves in foreign financial institutions, President Akufo-Addo asserted that this practice undermines Africa's development financing efforts. He urged his counterparts to join forces in reallocating a portion of these reserves to African multilateral institutions, such as the African Development Bank (ADB) and the African Export-Import Bank (Afreximbank), to bolster their capacity and support the continent's development agenda.
President Akufo-Addo underscored the importance of this proposal in light of the challenges faced by African countries in accessing development finance, particularly during the COVID-19 pandemic. He argued that redirecting a portion of sovereign reserves to African institutions would strengthen their balance sheets and enable them to mobilize resources more effectively for Africa's economic recovery and sustainable development.
While acknowledging that his proposal represents a significant departure from current practices, President Akufo-Addo emphasized its alignment with the establishment of an African Investment Bank. The decision to designate Libya as the host country for the African Investment Bank was adopted during the 37th Ordinary Session of the African Union held in Addis Ababa, Ethiopia. The unanimous endorsement of Libya's candidacy reflects the commitment of African leaders to bolster the role of African finance in driving the continent's development agenda.
