Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), has advised African leaders to reduce their dependence on foreign aid and focus on harnessing local resources for economic growth.
Speaking at the African Union meeting in Ethiopia, she pointed out that Africa has abundant financial and natural resources that remain untapped.
The former Nigerian finance minister noted that the continent has around $250 billion in pension funds, but much of this wealth is invested outside Africa instead of being used for development.
Countries like South Africa, Nigeria, Kenya, Morocco, Botswana, and Namibia hold the largest pension funds, yet these funds are not fully utilized for local investments.
Okonjo-Iweala also called for stronger African financial institutions, stating that multilateral banks, such as the African Finance Corporation, need recapitalization to expand their balance sheets.
She explained that Africa’s infrastructure needs surpass $200 billion annually, yet its financial institutions have a combined balance sheet of only $70 billion.
She emphasized the importance of managing Africa’s mineral wealth, including lithium, manganese, and copper, which are essential for electric vehicle batteries.
She encouraged African nations to develop local industries that process these materials instead of exporting raw resources.
According to her, investing in local industries would create jobs, boost trade within Africa, and reduce reliance on external funding.