Amin Adam Kicks Against African Countries Investing In Foreign Financial Institutions
- Finance Minister Dr Mohammed Amin Adam says African governments must halt investment in foreign financial institutions
- He said transmitting funds from the continent to foreign institutions deprives Africa of much-needed funds to develop infrastructure
- He has urged African countries to create sector-specific funds to build infrastructure and develop continental trade
Finance Minister Dr Mohammed Amin Adam has urged African governments to halt investing in foreign financial institutions.
He said resource-rich African countries should unite and establish regional funds to draw financial resources for intra-African infrastructure development and propel continental trade.
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He said African countries transmitting money to foreign financial institutions deprive the continent of much-needed capital for infrastructural development, among other things, contributing to the economic crises common to the continent.
Speaking on the margins of the 2024 African Development Bank (AfDB) Annual Meetings in Nairobi, Kenya, he said the regional funds could be sector-specific and drive direct investment into these sectors.
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Amin Adam said such investment would improve the weaknesses in infrastructure and connectivity and charge the success of the African Continental Free Trade Area (AfCFTA) agreement.
Narrowing down on the energy sector challenges, Amin Adam said funds pooled could be used to develop energy pools by connecting the West, East and Central African power pools to increase electricity coverage and make power cheaper for households and businesses.
He urged African governments to collaborate to develop infrastructure to improve intra-continental connectivity, which would boost trade on the continent.
Amin Adam backs calls for African sovereign rating agency
Finance Minister Dr Mohammed Amin Adam has backed calls for establishing an African sovereign credit rating agency.
He said such a rating agency would ensure a balanced and comprehensive assessment of credit risks, enabling African countries to access competitive capital and promoting the development of the continent’s domestic market.
The Finance Minister said an African rating agency would offer an alternative sound second opinion when foreign rating agencies unfairly assess developing countries on the continent.
Speaking to the media, he said the African Development Bank should lead the charge by organising relevant stakeholders to determine the framework.
The stakeholder meeting, he said, would be crucial to building the rating agency’s credibility.
Amin Adam cautions against panic-buying dollars
YEN.com.gh reported that the Minister for Finance, Dr Mohammed Amin Adam, has cautioned Ghanaians against panic buying dollars from the foreign exchange market.
He attributed the cedi's free fall to the rush for dollars.
He said the panic buying of dollars and other foreign currencies as a store of value erodes the cedi's gains following the International Monetary Fund's injection of much-needed foreign exchange at the start of the debt bailout programme.
Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh
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Source: YEN.com.gh
