PERSPECTIVES FROM THE AFRICARIBBEAN TRADE AND INVESTMENT FORUM
BY KETSIA FERNANDO
Each year, thousands of influential leaders and business executives from Africa and the Caribbean come together at the AfriCaribbean Trade and Investment Forum to drive market integration and foster economic collaboration between the two regions. Organized by Afreximbank, this year’s forum was held in the Bahamas and centered on the theme “Uniting on the Platform of Global Africa.” We present excerpts from one of the key panel sessions “Navigating Economic Growth and Prosperity in a Polycrisis World,” moderated by CNN’s Eleni Giokos, edited for brevity. Panel (from Left to Right):
Moderator: Eleni Giokos, Correspondent, CNN
Panelists:
Mr. John A Rolle, Governor of the Central Bank of Commonwealth of Bahamas
Prof. Yemi Osinbajo, Former Vice President of Nigeria
Dr. Donald P. Keburuka, Former President African Development Bank Group
Dr. Howard Nicholas, Senior Lecturer in Economics at the Erasmus University of Rotterdam
Mr. Denys Denya, Senior Executive Vice President, Afreximbank
Hon. Kevin Greenbridge, Governor, Central Bank of the Barbados
Contributor (Virtual): Prof. Jeffrey David Sachs, Economist and Public Policy Analyst, Professor at Columbia University.
Jeffrey Sachs: The most pressing issue for Africa is achieving unity. In a world dominated by large players like China, India, the United States, and Europe, Africa needs to consolidate its 1.4 billion population, which will potentially grow to 2.5 billion by mid-century, to become a major global force. However, the legacy of colonialism left Africa as 54 separate countries, which hampers its geopolitical influence, risk premium, scale of investment, and industrial capacity.
The African Union (AU) becoming the 21st member of the G21 is a significant step, but it’s not being leveraged effectively. Africa must assert its influence on the global stage, especially in restructuring the global financial architecture, which currently disadvantages smaller and poorer nations through outdated credit rating methodologies. These countries are often rated lower, not due to poor growth prospects—Africa, in fact, has strong growth potential—but due to the use of standards that fail to account for economies of scale.
Ultimately, Africa’s turn for economic growth has long been overdue. It’s time for the continent to pursue a trajectory of high growth, high investment, and robust financing. This requires a united front among African leaders and institutions, recognizing that a strong union in a world of major global players is key to achieving these breakthroughs.
Given the AfriCaribbean cultural, historical, and economic connections, how difficult is it to craft effective policies in the face of global crises, especially when major powers are adopting inward-looking approaches?
Mr. Rolle: The Caribbean nations, being small economies, often find themselves on the receiving end of global shocks. We cannot influence these shocks, such as inflation, which increases demand for foreign exchange and affects the cost of servicing public debts. Consequently, we must adjust our domestic interest rates in response to international trends. Our economies, heavily reliant on tourism, are further impacted by geopolitical tensions, fuel costs, and disruptions in supply chains, which reduce tourists’ disposable income and spending capacity. To build resilience, we focus on diversifying our economies—not necessarily by creating new industries but by expanding opportunities within existing sectors.
How would you assess the global challenges affecting Nigeria’s capacity to sustain and expand its economic influence?
Prof. Osinbajo: The key issue in Nigeria is managing multiple challenges simultaneously to identify suitable solutions. Our primary focus is to translate our potential into reality. One effective way to achieve this is by creating an environment that encourages private sector investment. While global challenges exist, our main concern is not these external headwinds but rather addressing our internal issues. We must address these domestic issues to maximize our economic potential. The Dangote refinery, the largest single-line refinery in the world, exemplifies the power of private sector involvement in achieving major projects. It shows that the private sector can attract capital more efficiently than the government and can drive significant developments.
What governance model could effectively unify Africa’s voice, especially considering the African Union’s ongoing reforms?
Dr. Keburuka: The African Union (AU) has been working on extensive reforms, but it still faces some structural deficiencies. Rather than abandoning the AU in favor of global institutions, Africa should focus on addressing these deficiencies and enhancing its own institutions. Global institutions often have their own agendas and may not always align with Africa’s needs. In addition to strengthening African institutions, it is essential to build stronger connections within the Global South. This approach, which might be described as regionalized globalization or “polyglobalization,” recognizes that the current global model often fails to benefit Africa.
Based on the need to increase the capacity of African institutions like Afreximbank, is this achievable, and what do you need to make it happen?
Denys Denya: Absolutely, scaling up is essential to turn potential into reality. Our ability to support companies rely on the capital provided by our shareholders. During the pandemic, we secured $2 billion in guarantees to bring vaccines to the continent, and in return, African governments raised their equity in the Bank by $2.6 billion to strengthen the institution. We need African solutions to Africa’s problems, which means raising funds from within the continent, such as deposits from central banks, and leveraging those to secure additional funding to tackle various challenges. Therefore, we indeed require stronger institutions to provide the necessary capital and funding.
