African countries urged to ratify protocol to establish African Investment Bank

As African Ministers of Finance meet this week to consider Africa as a growth pole, it has emerged that only two African countries have signed a protocol to establish an African Bank for Investment.

The Bank when established will complement the African Development Bank (AfDB) in stimulating economic growth in Africa by raising finance to support businesses, create jobs and enhance Africa’s economy.

During a workshop in Addis Ababa, Ethiopia, Wednesday March 21, 2012 for journalists covering the 5th Joint Annual Meetings of the AU Conference of Ministers of Economy and Finance and ECA Conference of African Ministers of Finance, Planning and Economic Development, panelists, Prof. Emmanuel Nnadozie, Director of Economic Development and NEPAD Division, Economic Commission for Africa and  to Dr. Rene Kouassi N’guetta, Director of Economic Affairs of the African Union Commission have argued that Africa has the potential to become a growth pole.

But one of the efforts to engineer that growth, the setting up of an African Bank for Investment is being stalled, because only two countries, Libya and Congo Brazaville have signed the Protocol to establish the Bank. These two countries are yet to ratify the protocol, according to Dr. N’guetta. He said 15 countries are required to ratify the protocol before the Bank can be established.

He also urged African governments to speed up the ratification of the protocol to make the Bank a reality, because the AfDB alone cannot do everything, he told ghanabusinessnews.com later in an interview.

Prof. Nnadozie said as African countries pursue the objectives of economic growth there are issues such as poverty reduction and unemployment, especially, youth unemployment to be addressed.

He said Africa has the natural resources, which when well managed can make the continent’s economy grow. He also cited increasing urbanisation and the growing middle class in Africa as some of the potentials that could lead to that growth.

From Thursday March 22, experts from around the continent will start meeting to discuss the technical issues on the potential for Africa to become a growth pole.

By Emmanuel K. Dogbevi, in Addis Ababa, Ethiopia