Building A Stronger Africa In An Age Of Crisis

A high-level panel of senior bankers, economists, and political leaders kicked off the first day of the Afreximbank Annual Meetings in the Bahamas this June. The discussion focused on strategies for Africa to assert itself and its needs more effectively within the global economic system in the face of multiple global shocks, or what some call a polycrisis.

The panellists underscored the need for African institutions, backed by African capital, to take the lead in shaping the continents destiny, rather than relying solely on international financial institutions. Other important takeaways from the thought-provoking conversation included the importance of economic diversification. Africa must break free from overreliance on a narrow spectrum of export, experts argued.

South-South cooperation and African unity also present significant opportunities for progress. Similarly, African countries need to acknowledge the pivotal role of private enterprises in driving economic expansion. Experts also called for a strong focus on export-oriented manufacturing, noting that industrialisation was the proven path to prosperity.

John Rolle, governor of the Central Bank of the Bahamas, opened discussion with an acknowledgment that, like many nations in Africa and the global south, the Bahamas had felt the sting of the recent spate of global economic shocks. When you look at the Caribbean countries, we are on the receiving end. We fit the definition of small countries and are not able to influence oncoming shocks, he noted.

The Bahamas and particularly the islands significant tourism industry - had been adversely impacted by rising geopolitical tensions, higher fuel costs, and global supply chain disruptions, not to mention higher interest rates, he observed. This situation has impacted disposable incomes and spending capacity for tourists. Worse still, the economic fallout for the Bahamas and other islands in the Caribbean has been worsened by the escalating impact of increasingly deadly climatic events in the Atlantic.