Nairobi — President William Ruto has urged COMESA member states to invest more in homegrown institutions to finance the continent's growth.
Speaking during the 24th COMESA Heads of State and Government Summit in Nairobi, President Ruto said Africa must move away from dependence on global financial systems that were designed in a bygone era and continue to disadvantage developing nations.
"The global financial system remains trapped in the architecture of a bygone era. Institutions such as the IMF and the World Bank, conceived in the aftermath of the Second World War 80 years ago, continue to be dominated by wealthy nations, resulting in persistent inequities and a limited voice for developing countries," he said.
The head of state urged COMESA nations to strengthen regional financial institutions such as the Trade and Development Bank (TDB), Afreximbank, Africa Finance Corporation (AFC), and ZEP-RE, which he described as "embodiments of our collective determination to mobilise African capital for African priorities."
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He noted that the TDB, initially established under the Preferential Trade Area (PTA), has evolved into the financial arm of the common market, driving regional trade, investment, and sustainable development.
"That is why, here in Kenya, we are backing our words with action," Ruto said.
"Having already committed $50 million as share capital to Afreximbank, we are now making an additional $100 million investment to enhance our shareholding in TDB."
He added that these African-led banks are offering long-term facilities of up to 25 years at interest rates as low as 2 percent, proof that investing in local institutions delivers sustainable value for member countries.
Ruto, who assumed the chairmanship of COMESA during the summit, said intra-COMESA trade remains low, with Africa contributing only 3 percent to global trade and 14 percent to intra-Africa trade.
He called for stronger collaboration, local value chains, and freer movement across borders.
The head of state highlighted Kenya's recent decision to lift visa requirements for most African nationals as a practical step toward integration, urging other countries to follow suit.
President Ruto has in the past repeatedly criticized Western-dominated financial systems and rating agencies, accusing them of perpetuating economic inequality and unfairly penalizing African economies.
Ruto argued that global credit rating agencies often downgrade African nations based on biased metrics, inflating their borrowing costs and undermining their access to affordable finance.
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He has also called for a "new global financial order" that treats developing countries equitably and reflects current global realities.
Earlier in 2024, during the Africa Climate Summit in Nairobi, Ruto decried the lopsided nature of global finance, saying Africa must "redefine its financial independence" by strengthening regional banks and mobilizing domestic resources for development.
