Africa: Afreximbank President advocates industrialisation, trade to secure Africa’s economic sovereignty

The President and Chairman of the Board of Directors of African Export-Import Bank, Dr George Elombi, has said Africa’s economic sovereignty can only be achieved through large-scale industrialisation, stronger intra-African trade, and improved domestic resource mobilisation.

Speaking during a media briefing in Abuja, Elombi stressed that Africa must move away from a growth model centred on exporting raw materials and importing finished goods, arguing that sustainable development depends on building industries that create value from the continent’s resources.

According to him, Africa’s next phase of economic transformation must be driven by manufacturing, value addition, regional trade integration, and stronger African financial institutions capable of mobilising capital for long-term development.

“Africa’s sovereignty will not be secured by exporting more of what we do not process. It will be secured when we build the industries that turn African resources into African value,” Elombi said. He added that industrialisation requires access to affordable capital structured around Africa’s realities and growth potential.

Elombi noted that Afreximbank’s mandate is focused on accelerating this transition by supporting Africa’s shift from commodity dependence to industrial productivity, from fragmented markets to integrated trade, and from external vulnerability to greater economic resilience.

Through direct financing, its equity investment vehicle, the Fund for Export Development in Africa, and partnerships with industrial players such as ARISE IIP, the bank is supporting the development of industrial parks and special economic zones across the continent. These investments target key sectors including mineral processing, agro-processing, automotive manufacturing, textiles, and pharmaceuticals.

He explained that scaling such investments is essential to building competitive manufacturing hubs and strengthening regional production linkages across Africa.

Elombi also highlighted the importance of fair access to capital, noting that credit ratings significantly influence funding costs, investor confidence, and the ability of African institutions to finance trade, infrastructure, and industrial expansion.

“Fair credit assessment is part of Africa’s sovereignty agenda,” he said, noting that more accurate assessments would enable African institutions to raise capital competitively and channel funding into trade, industrial growth, and job creation.

He cited Afreximbank’s recent investment-grade rating from S&P Global Ratings, which assigned the bank a BBB+ long-term and A-2 short-term issuer credit rating, as evidence of the importance of evaluating African institutions within their proper context.

The rating followed a strong first-quarter 2026 performance, with total assets and contingencies rising to $49.4 billion, shareholders’ funds reaching $8.6 billion, a capital adequacy ratio of 23 per cent, and a non-performing loan ratio of 2.4 per cent.

Elombi urged rating agencies to recognise Afreximbank’s treaty-based structure, preferred creditor status, shareholder backing, and strategic role in financing African trade and development.

Despite global economic headwinds, he said the bank has continued to attract strong investor confidence, evidenced by successful Samurai and Panda bond issuances, as well as a $2 billion equivalent dual-tranche syndicated facility raised in the first quarter of 2026 from 31 lenders across Europe, the Middle East, Asia, and Africa.

He further emphasised that industrialisation alone would not guarantee economic sovereignty unless African goods can move efficiently across the continent. To address this, Afreximbank remains committed to supporting trade-enabling infrastructure, payment systems, logistics corridors, and the implementation of the African Continental Free Trade Area.

“Capital, industry and trade must work together,” Elombi said. “Africa must finance its production, process its resources, and move its goods across its own markets.”

He also welcomed discussions around a New African Financial Architecture, describing it as critical to strengthening Africa’s ability to mobilise domestic capital for development.

Looking ahead, Elombi said Afreximbank will continue prioritising investments in industrial capacity, strategic minerals processing, value-added manufacturing, digital payments, energy security, and intra-African trade as part of efforts to build a more self-reliant African economy.