Africa is losing significant wealth by depositing its money in foreign financial systems instead of using those resources to finance businesses, infrastructure and development at home, according to Benedict Oramah, former president of the African Export-Import Bank (Afreximbank). Speaking at the Creative Africa Nexus (CANEX) 2026 event in Lagos following a screening of The Lion Speaks: The Rise of Global Africa, Oramah argued that when African countries place their funds abroad, they contribute to the growth of foreign economies while constraining their own capacity to finance development projects.
Oramah highlighted what he described as a fundamental contradiction in the international financial system. While foreign markets readily accept deposits from African institutions and countries, African borrowers seeking to access financing from those same systems face significant hurdles, including country-risk assessments and compliance requirements. He pointed out the irony that African funds are welcome when deposited abroad, yet African borrowers encounter restrictions when attempting to borrow from the institutions holding their money.
The former Afreximbank president stressed that African countries and institutions must take responsibility for developing stronger financial systems and instruments rather than continuing to rely on external markets. "If there's a problem with your financial institution, you cannot keep your money, fix it," he said, emphasizing that African nations should be willing to retain and deploy resources within their own economies. He called for financial instruments designed to reverse capital outflows from Africa and make it easier for businesses and institutions to access funding within the continent.
Oramah cited existing African-led initiatives as models for addressing these structural challenges. He referenced the Pan-African Payment and Settlement System (PAPSS) as an example of efforts to tackle challenges in the continent's financial and trade systems, as well as the Intra-African Trade Fair, which connects businesses, governments, investors and financial institutions to mobilise resources and expand commercial activities within Africa. He also linked the continent's economic transformation to restoring the dignity of African people, noting that some financial practices accepted elsewhere have historically been discouraged when African institutions attempt to adopt them.
Beyond finance, Oramah underscored the broader implications of capital retention. He cited healthcare as an example, recounting personal experience requiring medical treatment abroad to illustrate why African countries must invest in quality medical facilities so citizens do not need to leave the continent for specialised care. He argued that retaining money spent on medical services abroad would strengthen African healthcare capacity. His remarks reflect a wider perspective that Africa's economic transformation requires more than external financing; it depends on keeping domestic capital within the continent, strengthening local financial institutions and building infrastructure to support trade, healthcare and productive investment.
Oramah also called for stronger economic and cultural ties between Africa and the Caribbean, arguing that the legacy of slavery and colonialism had created divisions between Africans and their descendants in the Caribbean and the Americas that remained underdeveloped for centuries.