Former President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has called on African countries to rethink their economic development strategies by prioritising home-grown solutions over the wholesale adoption of foreign economic models.
Oramah said the continent's quest for sustainable economic transformation and independence would depend largely on its ability to mobilise domestic capital, strengthen indigenous financial institutions and invest in industrialisation.
He made the call while delivering remarks at the 20th Annual Lecture of AELEX, held in Lagos under the theme, “Global Shocks, Local Impact: Battle for Survival or Opportunities to Leapfrog and for Growth”.
The former Afreximbank president argued that economic policies and practices regarded as international standards were often developed to address the specific realities of other countries and might not necessarily reflect Africa's needs.
He maintained that while African nations could learn from successful economic models elsewhere, they should be willing to adopt approaches that align with their local circumstances.
“Best practice is always somebody’s practice, designed for somebody’s circumstances. Where it serves us, we adopt it. Where it does not, we must have the conviction to depart from it,” he said.
Oramah further argued that Africa's political independence would remain incomplete without economic emancipation, urging governments to reduce their reliance on foreign financing and institutions.
He expressed concern that between $350 billion and $500 billion of Africa's foreign exchange reserves were held outside the continent, even as African countries continued to encounter difficulties securing credit from international financial institutions.
Highlighting the capacity of indigenous institutions to mobilise financial resources, Oramah disclosed that Afreximbank raised more than $40 billion through its central bank deposit programme during his tenure.
He said the achievement demonstrated that African financial institutions could attract and manage substantial resources within the continent, rather than depend excessively on external sources.
The former bank chief also called for greater investment in mineral processing, indigenous commercial banks and regional payment infrastructure, stressing the need for African countries to move beyond exporting raw materials and capture more value from their natural resources.
On regional economic integration, he identified the Pan-African Payment and Settlement System (PAPSS) as an important platform for facilitating cross-border trade using African currencies.
According to him, the system could reduce transaction costs, limit dependence on foreign currencies and strengthen economic cooperation among African countries.
Addressing a question on Nigeria's mining partnership with the United States and the wider geopolitical implications of foreign investments, Oramah advised Nigerian leaders to establish clear national economic priorities before deciding which international partners to engage.
He cautioned African governments against allowing rivalry among global powers to determine the continent's economic direction, insisting that partnerships should be guided by domestic interests and development objectives.
“If you run away from the Americans, the Chinese will wait for you. The Russians will wait for you. So what does that tell you? Have your own piece of hope,” he said.