The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, has advised African leaders to reduce dependence on foreign aid and instead leverage domestic resources to attract investments and drive economic growth.
Speaking at the African Union meeting in Ethiopia, Okonjo-Iweala stressed that Africa must undergo a mindset shift, as the continent possesses vast untapped financial and natural resources capable of driving sustainable development.
"Africa needs to change its mindset about aid. We should start seeing it as a thing of the past," she stated.
She urged leaders to focus on two critical areas:
Attracting investments
Mobilizing domestic resources
Okonjo-Iweala highlighted that Africa has approximately $250 billion in pension funds, yet much of it is invested outside the continent instead of being directed toward local economies. She cited South Africa, Nigeria, Kenya, Morocco, Botswana, and Namibia as countries with the largest pension funds that could be better utilized for development.
Additionally, she called for the recapitalization of African multilateral development banks, including the African Finance Corporation, to expand their financial capacity. She noted that while these institutions hold a combined balance sheet of $70 billion, Africa’s annual infrastructure needs exceed $200 billion, making internal financial strengthening essential.
Okonjo-Iweala also emphasized the need for Africa to take control of its mineral wealth, particularly lithium, manganese, and copper, which are critical for electric vehicle battery production. She urged governments to develop local processing industries, create jobs, and promote intra-African trade rather than exporting raw materials without adding value.
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