Immediate past President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has called on African nations to abandon the wholesale adoption of foreign economic models and build homegrown strategies to achieve true financial independence.

Delivering the keynote address at the 20th Annual Lecture of AELEX in Lagos, themed ‘‘Global Shocks, Local Impact: Battle for Survival or Opportunities to Leapfrog and for Growth’’, Oramah argued that Africa’s long-term transformation relies on mobilizing domestic capital, bolstering indigenous financial institutions, and aggressively pursuing local industrialization.

He cautioned African leaders against blindly adopting international economic standards that were crafted for foreign realities.

“Best practice is always somebody’s practice, designed for somebody’s circumstances," Oramah stated. "Where it serves us, we adopt it. Where it does not, we must have the conviction to depart from it.”

Tackling Capital Flight and Resource Processing

Highlighting the gap between political and economic freedom, Oramah warned that Africa’s political independence will remain incomplete until the continent curbs its heavy reliance on Western financial institutions and foreign financing.

He revealed that an estimated $350 billion to $500 billion of Africa’s foreign exchange reserves are currently held in banks outside the continent, even as African nations face strict credit conditions when borrowing from foreign lenders.

To break this cycle, Oramah pointed to Afreximbank’s central bank deposit programme, which mobilized over $40 billion during his tenure, as proof that indigenous institutions possess the capacity to manage massive financial reserves.

He called for immediate investments in regional payment systems like the Pan-African Payment and Settlement System (PAPSS), local commercial banking infrastructure, and in-country mineral processing to ensure African nations retain value from their natural resources rather than serving as raw material exporters.

Navigating Geopolitical Rivalries

Addressing questions regarding foreign investments and Nigeria’s mining partnerships with global superpowers like the United States, Oramah urged African governments to establish clear national priorities before entering bilateral agreements, rather than being drawn into global power struggles.

“If you run away from the Americans, the Chinese will wait for you. The Russians will wait for you. So what does that tell you? Have your own piece of hope,” Oramah concluded.