By Cathy Maulidi in Nigeria, Abuja:
Speakers at the 32nd Afreximbank 2025 Annual Meeting have urged African countries, including Malawi, to transition from reliance on aid and swiftly embrace trade as a solution to their fractured economies.
Speaking at the conference in Abuja, Nigeria, renowned researcher with the Asia Research Institute, Kishore Mahbubani, implored countries to rise and build their own economies for their development.
“African countries should shift away from a reliance on aid from the West and, instead, prioritise trade for sustainable development,” Mahbubani said. “This shift is critical now, as the West is scaling back and cutting aid to Africa. African countries, I call upon you to rise. The future should be trade, not aid.”
- Advertisement -
According to Mahbubani, over-reliance on aid can foster a sense of dependency, hindering a country’s ability to develop self-sufficient economic strategies and long-term development plans.
- Advertisement -
“Trade is a powerful engine for long-term, sustainable economic growth. Exports generate foreign exchange earnings, which can be used to finance imports, invest in infrastructure and diversify the economy.
“Participation in global trade also encourages competition, which, in turn, drives innovation, efficiency and higher productivity within domestic industries. It also facilitates the transfer of knowledge and technology. Trade can lift millions out of poverty and improve livelihoods. Trade is the way to go,” Mahbubani said.
Also addressing the conference, Executive Vice President for Intra-African Trade and Export Development Bank at Afreximbank, Kanayo Awani, said Africa has been impacted by several disasters, ranging from environmental shocks, the Covid pandemic and the Russia-Ukraine war.
“These shocks should push us to be innovative, in terms of trade, and to unite for a common purpose,” Awani said. “During these shocks, we have seen African alliances failing to function. We have seen African economies becoming fractured and trade has been severely affected. This annual meeting should help us share experiences and solutions.”
- Advertisement -
“Malawi’s Secretary for Trade and Industry Christina Zakeyu affirmed that Malawi was making strides in moving away from aid to trade.
“We, as Malawi, are moving towards the direction of trade because we know aid is not sustainable; only trade is sustainable,’ Zakeyu said. “That’s why, at the national level, we have agreed to develop policies that will foster trade. We are currently implementing an industrialisation agenda and a national export strategy, focusing on revitalising our economy.
“Spending time discussing [the issue of] how to get more aid is a waste of time because trade inherently offers numerous benefits,” Zakeyu said. “Through trade, we can create jobs, end poverty and improve development. Therefore, it is important to focus more on trade as it is more sustainable.”
African heads of state and government, private sector players, and financial institutions have convened in Abuja, Nigeria, for Afreximbank’s 32nd Annual Meeting.
President Lazarus Chakwera is expected to participate in the Presidential Plenary, where leaders will discuss the issue of how Africa and the Caribbean can rise in a fractured world.
