The Director-General of the World Trade Organization (WTO), Dr. Ngozi Okonjo-Iweala, has called on African leaders to move away from dependence on foreign aid and instead prioritize mobilizing domestic resources and attracting investments to foster economic growth.
Speaking on the sidelines of the African Union (AU) meeting in Ethiopia, Okonjo-Iweala emphasized the need for a fundamental shift in mindset, noting that Africa possesses vast untapped financial and natural resources that can be leveraged for sustainable development.
“Africa really needs to change its mindset about access to aid. We should begin to see it as a thing of the past,” she stated.
“Our focus should be on two key areas—attracting investment and mobilising domestic resources.”
Unlocking Africa’s Pension Funds for Development
Okonjo-Iweala highlighted that Africa holds approximately $250 billion in pension funds, much of which is currently invested outside the continent rather than being directed into local economies.
She urged African governments to reform regulations to enable pension funds to invest more in domestic infrastructure and development projects.
“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.
Additionally, she advocated for the recapitalization of Africa’s multilateral development banks, such as the African Finance Corporation, to expand their financial capacity and fund key projects.
“At present, these institutions have a combined balance sheet of about $70 billion, but our infrastructure needs alone exceed $200 billion annually. Instead of looking outward for financial support, we must strengthen our own institutions,” she added.
Maximizing Africa’s Mineral Wealth
Beyond financial resources, Okonjo-Iweala stressed the importance of Africa taking control of its vast mineral wealth, including lithium, manganese, and copper—key resources in the production of electric vehicle batteries.
She warned against the continued export of raw materials without value addition, urging African nations to develop local processing industries to create jobs and boost intra-continental trade.
“Africa’s mineral deposits are in high demand globally. Instead of allowing companies to extract and refine these resources abroad, we must ensure they are processed locally. This will increase job creation and strengthen our economies,” she said.
Removing Trade Barriers for Growth
The WTO chief also addressed trade barriers that limit Africa’s ability to export processed goods, calling on African leaders to leverage the upcoming WTO 14th Ministerial Conference in Cameroon next year to advocate for necessary reforms.
“The only way Africa can finance itself is by growing our economies, trading more, and adding value to our products. At the WTO, we are working to identify and remove trade barriers that prevent African nations from exporting value-added goods competitively,” she stated.
While acknowledging the complex geopolitical landscape, Okonjo-Iweala insisted that Africa has a “unique opportunity” to reposition itself in global trade.
