Akufo-Addo Demands 30% of Ghana's Overseas Assets be Withdrawn
Akufo-Addo is suggesting that a minimum of thirty percent of all public monies and other assets held in foreign banks and financial institutions be taken out of Ghana and other African states.
He thinks that the practice of holding national reserves overseas prevents Africa from receiving desperately needed funding for development.
At the 37th African Union summit in Addis Ababa, Ethiopia, President Akufo-Addo asked his colleagues to decide as a group to remove 30% of foreign assets and place them in African institutions during the Presidential Dialogue on African Union Financial Institutions.
He stated that the current system does not benefit African countries and underlined the need for structural changes in the global financial architecture.
President Akufo-Addo highlighted that most African countries hold their reserves in foreign banks, resulting in negative interest rates. He suggested that a minimum of 30% of each African state's sovereign reserves should be invested in African multilateral institutions such as the African Development Bank (ADB) and Afreximbank.
This move would strengthen these institutions' capacity to facilitate more resources for development.
Despite acknowledging that his proposal is relatively radical, President Akufo-Addo argued that it aligns with the establishment of an African Investment Bank. The 37th Ordinary Session of the African Union, held in Addis Ababa, decided that Libya would host the African Investment Bank due to its efforts and vision to enhance African finance.
The African leaders unanimously supported Libya's selection and called on member states to expedite the ratification of the bank's charter after recognizing its distinguished efforts in strengthening African finance.
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