"Work towards upgrading Bank’s credit rating from BBB to A" - Akufo-Addo to Afreximbank

President Akufo-Addo has charged Management of Afreximbank to work towards the development and implementation of an aggressive strategy to upgrade the Bank’s credit rating from BBB to A.

According to President Akufo-Addo, this can be achieved through the strengthening of the governance and management structures as well as personnel.

He tasked others countries who are well to do go beyond their allocated shares to contribute more towards the capitalization of the Bank.

Speaking at the 30th Annual Afrimbank Annual Conference in Accra, he said "I wish to call on all African countries to contribute towards improving the capitalization of the Africa Export-Import Bank"

President Akufo-Addo encouraged his colleague heads of states to consider whether the current $6 billion capital of the Africa Export-Import Bank (Afreximbank) was sufficient to catalyze the creation of a market on a continent whose combined market GDP is around $3.4 trillion.

"The development financing institutions on the continent remain highly undercapitalized, especially when compared to similar organizations in other jurisdictions, such as the Japan Bank for International Cooperation which has about $19 billion in share capital, and the Export-Import Bank of China which has market capital worth about $54 billion"

"If African countries are able to gain control over monies got from the extractive sector and plug the leakages from the extractive sector, the continent would be better placed to finance the Afreximbank."

"If we are able to gain greater control over the huge earnings that emanate from our extractive sector and plug the hole that permit significant outflows of illicit funds from the continent, we will be in a better position to assemble the monies necessary to strengthen the capital of Afreximbank.”

President Akufo-Addo believes that the improvement in the levels of engagement of Africa’s developing financial institutions hinges on better coordination and enhanced accountability.

"The importance of strengthening coordination with these institutions to ensure that they are working consistently for Africa and the African Diaspora and supporting the development agenda"

"I want to encourage the AU Commission to expedite the process of admitting the Afrximbank as a specialized agency of the AU, noting that the Bank will paly a very important role in the implementation of the African Continental Free Trade Area (AfCFTA).

Story by: Joshua Kwabena Smith