Empowering Africa's Cities and Regions for Economic Growth

The future of Africa's economy depends on empowering its cities and regions, rather than relying solely on national governments, said Prof Benedict Oramah, President and Chairman of the African Export-Import Bank (Afreximbank). In a speech at the 5th African Sub-Sovereign Governments Network (AfSNET) Business Engagement Programme, Prof Oramah emphasized the importance of decentralised development in closing the inequality gap across the continent. Despite robust economic growth, the benefits of this growth have been unevenly distributed, with the richest few accumulating more wealth, while the poorest struggle to make ends meet.

Key Takeaways:

• Africa's economic growth is hindered by the uneven distribution of wealth, with the richest few accumulating more wealth, while the poorest struggle to make ends meet (World Bank and Oxfam reports).
• Prof Oramah cited Algeria as an example of successful decentralised economic planning, which has led to a lower inequality index in Africa.
• Since the 1980s, Algeria has moved away from centralised models, helping it achieve the lowest inequality index in Africa.
• The country's ports, renewable energy sector, and manufacturing base are assets that could power continental trade under the African Continental Free Trade Area (AfCFTA).
• Afreximbank has channelled $2 billion to support regional governments with trade and investment financing since the launch of AfSNET in 2021.
• Projects have ranged from industrial parks in Nigeria and South Africa to feasibility studies for a $40 million pharmaceuticals facility in Kenya.
• The bank is investing in African Quality Assurance Centres to overcome barriers to exports, while training sub-national investment promotion agencies to attract global investors.

Statistics:

• Africa's per capita income has risen from $1,900 in 2016 to $2,500 in 2024 (Prof Oramah), with poverty levels falling in many regions.
• Africa's population is made up of over 270 sub-sovereign governments, which will require significant changes in policy and strategy to bridge the development gap within countries.
• Afreximbank has invested in more than 270 delegates who have been trained in Nigeria and Kenya over the past year.
• The bank's investments in African Quality Assurance Centres aim to increase exports by overcoming barriers to trade.

Sources:

• Ghana Web (September 8, 2025)
• African Export-Import Bank (Afreximbank)
• 5th African Sub-Sovereign Governments Network (AfSNET) Business Engagement Programme
• World Bank reports
• Oxfam reports