The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has urged African leaders to move away from dependence on foreign aid and instead focus on mobilizing domestic resources to drive investment and economic growth.
Speaking on the sidelines of the African Union meeting in Ethiopia, Okonjo-Iweala stressed the need for a mindset shift, highlighting Africa’s abundant yet underutilized financial and natural resources.
“Africa must change its perception of aid. We should start seeing it as a thing of the past,” she stated. “Our focus should be on two key areas; attracting investment and mobilizing domestic resources.”
She noted that Africa holds around $250 billion in pension funds, yet much of this capital is invested outside the continent rather than being used to boost local economies.
“The largest pension funds are in South Africa, followed by Nigeria, Kenya, Morocco, Botswana, and Namibia. These are significant resources that we must find ways to leverage for our development,” she emphasized.
Okonjo-Iweala also called for the recapitalization of Africa’s multilateral development banks, including the African Finance Corporation, to enhance their financial capacity and fund critical projects.
“Currently, these institutions have a combined balance sheet of about $70 billion, whereas our infrastructure needs exceed $200 billion annually. Instead of looking outward for financial support, we must strengthen our own institutions,” she explained.
She further underscored the importance of Africa taking control of its mineral wealth, particularly resources like lithium, manganese, and copper, which are essential for electric vehicle battery production.
To maximize benefits, she advocated for the development of processing industries within the continent to create jobs, boost intra-African trade, and reduce the export of raw materials without value addition.