Delivering a landmark address before the Zambian National Assembly, Mahama called on African countries to repatriate a portion of their vast foreign reserves and invest them in African financial institutions to stimulate infrastructure, industry, and economic growth. He projected that should 30% of these reserves be repatriated to Africa, it holds a stronger tendency to turn the continent’s fortunes around.
“As the African Union’s champion of African financial institutions, I am leading advocacy for the repatriation and investment of part of Africa’s huge foreign reserves in African financial institutions. Most of these reserves, by colonial construct, are held in Western financial institutions and, in most cases, generate little or no interest.”
“If 30% of these reserves were repatriated and invested in our own financial institutions, it would create an immense pool of wealth that could drive rapid infrastructural expansion and economic transformation across the continent.” he said
Africa’s financial transformation agenda is anchored in the African Union’s Agenda 2063, which calls for the creation of continental financial institutions to mobilise African capital, support intra-African trade, and reduce dependence on external financial systems. Central to this framework are three key institutions: the African Central Bank (ACB), the African Monetary Fund (AMF), and the African Investment Bank (AIB). Each is designed to advance financial independence and policy coordination across the continent.
The African Monetary Fund is envisioned as a continental pool of resources to assist countries facing balance-of-payments difficulties, promote monetary cooperation, and enhance fiscal coordination. The African Investment Bank aims to channel long-term investment into strategic development projects, including infrastructure, technology, and industrial expansion.
The African Central Bank is perhaps the most ambitious, ultimately overseeing a common monetary policy and a single African currency to facilitate trade and monetary stability. Preparatory work is already underway through an African Monetary Institute.
Mahama emphasized that redirecting even a portion of Africa’s foreign reserves into these institutions could boost liquidity, strengthen credit markets, and increase the capacity of regional banks to fund development projects. Collaborative networks such as the Alliance of African Multilateral Financial Institutions (AAMFI), which brings together bodies like the Africa Finance Corporation and the African Export-Import Bank (Afreximbank), could collectively mobilize over US$70 billion for trade, investment, and development initiatives.
Beyond financial reform, Mahama urged African nations to build regional prosperity platforms, including shared manufacturing zones, integrated energy grids, and digital infrastructure. “African countries must negotiate with one voice on minerals, trade, and climate finance,” he said, underscoring the strategic importance of unity in global economic negotiations.
His remarks reflect a broader push across the continent for economic autonomy, self-reliance, and value addition to natural resources rather than the continued export of raw commodities. Economists argue that stronger regional supply chains, harmonized trade policies under the African Continental Free Trade Area (AfCFTA), and reinvestment of African reserves into local institutions could unlock significant growth opportunities and enhance negotiating power in global financial discussions.
By advocating for strategic repatriation of reserves, investment in African financial institutions, and strengthened regional cooperation, Mahama argued that Africa can achieve meaningful economic emancipation.
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