President of the African Export-Import Bank (Afreximbank), Professor Benedict Oramah, has called on African leaders to negotiate for improved conditions when engaging with the International Monetary Fund (IMF).
Speaking at the launch of the Alliance of African Multilateral Financial Institutions in Accra, Prof. Oramah emphasized the importance of African countries leveraging their membership in the IMF to secure better treatment and support.
Prof. Oramah highlighted the disparity in how African nations are treated compared to their European and Asian counterparts, stressing the need for African countries to demand equitable treatment.
“It’s either you go there or quit. Because we are members of the IMF. The only problem is that when they go, they must make sure that they treat us the way they treat the European or Asian countries. I think that’s what we have to demand,” he asserted.
He also pointed out the need to revise the quota system within the IMF, which currently does not reflect Africa’s significant population and economic contributions.
“African countries must demand a change in the quota. We cannot have a continent with a 17 percent population of the world and have a five percent quota of an institution that has to bring stability in the micro-economies of these countries. They must know that African countries are members and not outsiders. We shouldn’t expect anybody to dictate for us,” Prof. Oramah emphasized.
In addition to calling for better IMF terms, Prof. Oramah recommended that African nations collaborate to establish a continental credit rating agency.
He argued that an African Credit Rating Agency is long overdue and would facilitate better access to capital for African governments while integrating the continent with global financial markets.
“It is institutions like ours that can force the IMF to recognize an African rating agency. When we go to China and Japan, they tell us to go to their own agencies to be rated but for us when we always want to issue papers we have to be rated by Fitch and whatever. We are just doing ourselves ill so charity begins at home so we need to do it,” he explained.
The newly launched Alliance of African Multilateral Financial Institutions aims to foster collaboration and exchange information on joint strategies to address Africa’s development needs.
It will also promote and defend unified positions on issues of common interest in international forums, advocating for Africa’s interests on global financial matters.
The formation of this alliance marks a significant step towards enhancing Africa’s collective bargaining power and ensuring that the continent’s financial sector can thrive in a globalized economy.