Okonjo-Iweala urges African leaders to move beyond foreign aid

The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has called on African leaders to shift their focus from foreign aid dependence and instead prioritize domestic resource mobilization to drive investments and economic development.

Speaking on the sidelines of the African Union (AU) Summit in Ethiopia, Okonjo-Iweala emphasized the need for a mindset shift, stressing that Africa is endowed with vast financial and natural resources that remain largely untapped.

“Africa really needs to change its mindset about access to aid. We should begin to see it as a thing of the past,” she declared.

According to her, Africa holds approximately $250 billion in pension funds, yet much of this capital is invested outside the continent rather than being deployed to support local economies.

“The biggest pension funds are in South Africa, followed by Nigeria, Kenya, Morocco, Botswana, and Namibia. These resources are hugely significant, and we need to find ways to tap into them,” she said.

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The WTO chief also advocated for the recapitalization of Africa’s multilateral development banks, such as the African Finance Corporation (AFC) and the African Development Bank (AfDB), to enhance their ability to finance key projects.

She noted that while these institutions currently hold a combined balance sheet of around $70 billion, the continent’s annual infrastructure financing needs exceed $200 billion.

“Instead of looking outward for financial support, we must strengthen our own institutions. Expanding their balance sheets would allow them to fund critical infrastructure projects that Africa desperately needs,” she stated.

Okonjo-Iweala also highlighted the need for African nations to take control of their vast mineral wealth, particularly lithium, manganese, and copper, which are crucial for electric vehicle (EV) battery production.

She cautioned against the continued export of raw materials without value addition, stressing that Africa must develop its own processing industries to:

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“Africa should no longer be a mere exporter of raw materials. We must establish industries that process these resources and drive our economies forward,” she urged.

The WTO Director-General’s remarks come amid growing calls for African self-sufficiency in finance, industrialization, and trade.

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Her statements reinforce the urgent need for the continent to leverage its abundant natural resources to build industries that support job creation and sustainable development.

As Africa moves forward with its Agenda 2063 development blueprint, Okonjo-Iweala’s call for self-reliance and strategic resource utilization presents a clear roadmap for the continent’s economic transformation.