The Director-General of the World Trade Organisation, Dr. Ngozi Okonjo-Iweala, has urged African leaders to move away from dependence on foreign aid and instead focus on mobilising domestic resources to attract investment and stimulate economic growth.
Speaking on the sidelines of the African Union meeting in Ethiopia, Okonjo-Iweala stressed the need for a shift in mindset, highlighting that Africa possesses vast, yet underutilised, financial and natural resources that could drive sustainable development.
She advised that foreign aid should no longer be seen as a primary solution to Africa’s economic challenges.
“Africa really needs to change its mindset about access to aid. We should begin to see it as a thing of the past,” she stated.
“Our focus should be on two key areas—attracting investment and mobilising domestic resources.”
Okonjo-Iweala pointed out that Africa holds approximately $250 billion in pension funds, yet much of this capital is invested outside the continent instead of being channelled into local economies where it could generate significant impact.
“The biggest pension funds are in South Africa, followed by Nigeria, Kenya, Morocco, Botswana, and Namibia. These resources are hugely significant, and we need to find ways to tap into them,” she explained.
The former Nigerian Minister of Finance also called for the recapitalisation of Africa’s multilateral development banks, including the African Finance Corporation, arguing that strengthening these institutions would expand their balance sheets and increase funding for crucial projects.
“At present, these institutions have a combined balance sheet of about $70 billion, but our infrastructure needs alone exceed $200 billion annually. Instead of looking outward for financial support, we must strengthen our own institutions,” she disclosed.
Furthermore, Okonjo-Iweala underscored the urgent need for African nations to take control of their vast mineral wealth, particularly lithium, manganese, and copper—critical components in the production of electric vehicle batteries.
She emphasised the importance of developing local processing industries to create jobs, enhance intra-continental trade, and put an end to the practice of exporting raw materials without adding value.
Her remarks reinforced the call for Africa to leverage its own resources and institutions to foster long-term economic resilience and self-sufficiency.
