Africa’s economic transformation depends on empowering local governments rather than relying solely on national administrations, Prof Benedict Oramah, President and Chairman of the African Export-Import Bank (Afreximbank), has said.
Speaking at the 5th African Sub-Sovereign Governments Network (AfSNET) Business Engagement Programme, held alongside the fourth Intra-African Trade Fair in Algiers, Prof Oramah argued that decentralised development is crucial to bridging inequality gaps across the continent.
“Your participation here sends a powerful message: local leadership is fundamental to Africa’s transformation,” he told governors, mayors, and industry leaders from across Africa, the Caribbean, and the wider diaspora.
He highlighted Africa’s progress, noting that per capita income has risen from $1,900 in 2016 to $2,500 in 2024, with poverty levels falling in many regions.
However, citing World Bank and Oxfam reports, he cautioned that the benefits of this growth have largely gone to a small elite, deepening inequality.
Drawing comparisons, Prof Oramah referenced British economist Paul Collier’s study contrasting Zambia’s stagnating copper belt with Chile’s successful copper-driven development, underscoring the need for policy shifts to balance growth within nations.
He praised Algeria as an example of decentralised planning. Since the 1980s, Algeria has gradually moved away from centralised models, achieving Africa’s lowest inequality index.
While regional disparities persist, Algeria’s ports, renewable energy sector, and manufacturing base position it strongly to drive trade under the African Continental Free Trade Area (AfCFTA).
Prof Oramah urged African sub-sovereign leaders to build partnerships with Algerian governors, envisioning a future where Algerian ports serve as gateways for trade from across Africa to Mediterranean and European markets.
Since its creation in 2021, AfSNET has channelled $2 billion to regional governments for trade and investment projects, including industrial parks in Nigeria and South Africa and a $40 million pharmaceuticals facility in Kenya.
The bank is also investing in African Quality Assurance Centres to overcome export barriers and has trained more than 270 delegates in Nigeria and Kenya to strengthen sub-national investment promotion agencies.
Expressing gratitude to participants, Prof Oramah said the forum demonstrated “the power of collaboration in action, partnerships formed, opportunities unlocked, and momentum built for a brighter future.”
He added that Africa’s transformation would be driven not only by national or continental strategies but also by empowered cities, provinces, and regions.
“When sub-sovereigns are empowered with access to finance, connections to markets, and essential tools to compete, they become engines of prosperity that uplift the entire continent,” he emphasised.
