Oramah: Africa’s $500bn Reserves Trapped Abroad Despite Funding Crisis

Former President of the African Export-Import Bank (Afreximbank), Prof. Benedict Oramah, has urged African leaders to reclaim control of the continent’s financial resources, warning that up to $500 billion in reserves remain outside Africa, despite severe local funding shortages.

 Oramah said Africa’s foreign reserves were estimated at between $350 billion and $500 billion, with most held in non-African banks. He noted that African countries could be denied credit by the same institutions holding their funds, citing compliance and country-risk concerns.

 He spoke last Wednesday at the 20th AELEX Annual Lecture at the Nigerian Institute of International Affairs, Lagos, where he called for home-grown economic solutions, and less dependence on foreign financing and imported economic models.

 Citing Asia’s response to the 1997–1998 financial crisis, Oramah pointed to the Chiang Mai Initiative, a regional financial safety net established by ASEAN countries, China, Japan and South Korea, with about $240 billion in financing capacity.

 He urged African countries to strengthen indigenous financial institutions, expand local-currency financing, and retain more capital within the continent.

 Oramah also advocated wider use of the Pan-African Payment and Settlement System (PAPSS) to facilitate trade in African currencies, reduce transaction costs and deepen regional integration.

 He disclosed that Afreximbank mobilised more than $40 billion through its central bank deposit programme, during his tenure. He also called for investment in energy, data centres and local processing of critical minerals.

On Nigeria’s international partnerships, he advised leaders to set national priorities before choosing foreign partners, and cautioned against allowing rivalry among global powers to dictate the country’s economic direction.

The lecture was chaired by Ecobank Nigeria Chairman, Mrs Bola Adesola, who emphasised strong institutions, effective leadership and preparedness, as essential tools for navigating global economic disruptions.

Mrs Adesola urged African businesses and governments to move beyond resilience, and deliberately build capacity for transformation