President Akufo-Addo is suggesting that Ghana retrieve a minimum of 30% of all public funds and other assets stored in foreign banks and financial institutions.
He stated that Ghana and other African countries often deposit their sovereign reserves in foreign financial institutions, which he thinks is hindering much-needed development financing for Africa.
Addressing the Presidential Dialogue on African Union Financial Institutions during the 37th African Union summit in Addis Ababa Ethiopia, he urged his peers to collectively agree to withdraw 30% of foreign reserves and place them in African Institutions.
“We’re all in agreement that the way the Global Financial architecture works at the moment, it doesn’t work in our favour and that there is a need to make some fundamental systemic reforms,” he said.
President Akufo-Addo stated, “Currently, most of our countries hold reserves in foreign banks, which mostly yield negative interest rates.”
It is proposed that at least 30% of the reserves of each African State should be allocated to investments in African multilateral institutions.
“I speak about the ADB, I speak of Afreximbank (African Export-Import Bank) which will strengthen their balance sheets and strengthen their capacity also to facilitate more and more resources for our development”.
Read Also: NPP Manifesto Committee: Okyeame Kwame,Prince David Osei as members of Arts
The President based his call on the insights gained from the COVID-19 pandemic, during which numerous states faced difficulties in obtaining development finance to carry out economic recovery programs.
While acknowledging that it is a bold suggestion, he maintained that his proposal aligns with the establishment of an African Investment Bank.
The 37th Ordinary Session of the African Union took place in Addis Ababa, Ethiopia, where a decision was made to choose Libya as the host country for the African Investment Bank.
The African leaders based their collective decision on Libya’s proactive efforts and vision to enhance the role of African finance. They urged member states that had not yet ratified the bank’s charter to expedite the process after reviewing the outstanding efforts.
