Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organisation (WTO), has called on African leaders to move away from dependence on foreign aid and instead focus on mobilizing domestic resources and attracting investments to fuel economic growth.
Speaking during the African Union (AU) meeting in Ethiopia, she emphasized the need for a mindset shift, highlighting Africa’s vast untapped financial and natural resources as key drivers for sustainable development.
“Africa must change its mindset about aid. It’s time to see foreign aid as a thing of the past. Our priority should be attracting investments and mobilizing domestic resources to build a self-reliant future,” Okonjo-Iweala stated.
Unlocking Africa’s Financial Potential
The WTO chief revealed that Africa holds approximately $250 billion in pension funds, yet a significant portion of this capital is invested outside the continent. She urged African governments to reform regulations to enable pension funds to invest more in local infrastructure and development projects.
“South Africa, Nigeria, Kenya, Morocco, Botswana, and Namibia are home to some of the continent’s largest pension funds. These resources are critical, and we must find ways to channel them into our economies,” she explained.
Strengthening African Financial Institutions
Okonjo-Iweala also advocated for the recapitalization of Africa’s multilateral development banks, such as the African Finance Corporation, to expand their balance sheets and increase funding for essential projects.
“Currently, these institutions have a combined balance sheet of about 70billion,butAfrica’sinfrastructureneedsaloneexceed70billion,butAfrica’sinfrastructureneedsaloneexceed200 billion annually. Instead of seeking external support, we must strengthen our own financial institutions to meet these demands,” she added.
Harnessing Africa’s Mineral Wealth
Beyond financial resources, Okonjo-Iweala stressed the importance of African nations taking control of their mineral wealth, particularly lithium, manganese, and copper—key components for electric vehicle battery production. She warned against the continued export of raw materials without value addition, urging African countries to develop local processing industries to create jobs and boost intra-continental trade.
“Africa’s mineral deposits are in high demand globally. We must stop allowing companies to extract and refine these resources abroad. By processing them locally, we can create jobs, add value, and strengthen our economies,” she said.
Addressing Trade Barriers
Okonjo-Iweala also highlighted trade barriers that hinder Africa’s ability to export processed goods. She called on African leaders to use the upcoming WTO 14th Ministerial Conference in Cameroon to push for reforms that remove these obstacles.
“Africa’s path to self-financing lies in growing our economies, increasing trade, and adding value to our products. At the WTO, we are working to identify and eliminate trade barriers that prevent African nations from exporting value-added goods competitively,” she stated.
A Unique Opportunity for Africa
Despite the complex global geopolitical environment, Okonjo-Iweala believes Africa has a “unique opportunity” to reposition itself in global trade. By leveraging its resources, strengthening institutions, and fostering intra-continental trade, Africa can achieve sustainable economic growth and reduce reliance on foreign aid.
