Dr. Ngozi Okonjo-Iweala, the Director-General of the World Trade Organization (WTO), has called on African leaders to move away from foreign aid reliance and instead focus on mobilizing domestic resources to attract investments and drive economic growth.
She emphasized the need for a shift in mindset, highlighting that Africa is endowed with abundant untapped financial and natural resources capable of fueling sustainable development.
Speaking on the sidelines of the African Union summit in Ethiopia, Okonjo-Iweala stressed that foreign aid should be viewed as a thing of the past.
“Africa must change its approach to aid,” she remarked. “We need to consider it a thing of the past. Our focus should be on two main areas—attracting investment and mobilizing domestic resources.”
She pointed out that Africa holds roughly $250 billion in pension funds, much of which is invested abroad instead of being used to strengthen local economies.
“The largest pension funds are found in South Africa, followed by Nigeria, Kenya, Morocco, Botswana, and Namibia. These resources are incredibly significant, and we must explore ways to tap into them,” she stated.
Okonjo-Iweala also called for the recapitalization of Africa’s multilateral development banks, including the African Finance Corporation. This, she said, would boost their financial capacity and enable them to fund critical infrastructure projects.
“These institutions currently have a combined balance sheet of about $70 billion, while our infrastructure needs exceed $200 billion annually. Instead of seeking foreign financial support, we must empower our own institutions,” she explained.
She also highlighted the urgent need for African nations to take charge of their mineral wealth, particularly lithium, manganese, and copper, which are essential for electric vehicle battery production.
