Afreximbank pushes for united front to boost Africa's global clout

 

Africa Export-Import Bank (Afrieximbank) Senior Executive Vice President Denys Denya. [Courtesy]

African nations and diaspora communities must close ranks to strengthen their voice on the international stage and promote more equitable development, the Africa Export-Import Bank (Afrieximbank) said on Wednesday.

Senior Executive Vice President Denys Denya argued "only by coming together as Global Africa can we achieve our full potential."

Denya, in a statement seen by The Standard, noted that despite holding over 30 per cent of global mineral reserves, Africa remained on the periphery of trade and finance due to a lack of unity.

"Individual African nations have little leverage over global headwinds like deglobalization trends favoring major powers," Denya said. "Through a united front encompassing our vast numbers, we could present a more compelling force."

Denya, said the fracturing of multilateralism under rising nationalism has undermined the rules-based system.

He said that deglobalization trends like nearshoring were exacerbating this marginalization as major powers focus on retaining influence near home. Nearshoring is defined as a close relocation and refers to the practice of relocating business operations to a nearby country. Nearshore outsourcing emerges as a response to offshoring, which seeks suppliers in remote locations to cut costs.

Meanwhile, protectionism and geopolitical tensions have undermined multilateral rules.

"The recurring shocks continue to threaten development progress in Africa and the Caribbean. As individual nations we have little power over these global headwinds," he stated.

He contended Africa's collective "imagination and resources" could create "a competitive edge" to drive better outcomes on challenges from climate change and debt to multilateral reform favouring developing economies.

Participants said that stronger cooperation across the African diaspora is vital to turning aspirations into concrete trade and investment deals that boost shared prosperity.

While viewpoints differed on the shape of a coordinated Africa-Caribbean agenda, there was agreement Denya had articulated a persuasive case for concerted pan-African action to withstand global economic headwinds.

The annual forum hosted by the Pan-African trade financier draws heads of state, development officials and corporate leaders promoting intra-African commerce and integration.