Newly sworn-in President of the African Export-Import Bank, Dr. George Elombi, has expressed reservation about the concessional lending to African countries, warning that such loans carry hidden costs that often cripple economies rather than strengthen them.
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Multilateral lenders such as the IMF and World Bank continue to play a central role in Africa by providing concessional loans that are relatively affordable and long-term, but Elombi warned that their hidden costs often outweigh the benefits.
Speaking at his investiture in Cairo on Saturday, Elombi said concessional loans come with policy strings that stifle growth and undermine sovereignty.
According to him, the conditions attached to such loans cause job losses, fuel political instability, restrict public investment in industrialisation and trap countries in commodity dependence.
“They have suggested that the cost of our loans is high. But what they have failed to point out is the actual cost of their so-called concessional loans—conditionalities that cause job losses and push young men and women onto the streets, reforms that restrict or prevent public investments in productive sectors, and heightened commodity dependence,” he said.
He described recent attempts to question Afreximbank’s preferred creditor status as a coordinated attack on African-owned institutions.
“Make no mistake, it is a coordinated attack on African sovereignty. What is strange and ironic is that these attacks are not because we fail. It is because we are successful,” he said.
Elombi insisted that Afreximbank’s mandate, set out in its charter, is not limited to short-term trade finance but extends to transforming the structure of African trade.
“How can Africa trade unless it produces? And how can it produce without transforming the very structure of its trade? This structural transformation is not mission drift; it is mission delivery,” he declared.
He pledged to deepen value addition, particularly in strategic minerals, to stop the export of raw commodities and build regional industries that retain wealth on the continent.
He announced plans to create a new financing window and a Strategic Minerals Development Programme to fund whole value chains from extraction to manufacturing.
He also called for investments in shared infrastructure, cross-border trade systems, and digital innovation, even suggesting the exploration of a Pan-African digital currency and stablecoin to strengthen financial integration.
“Should we not now explore the creation of a Pan-African Digital Currency, including a stablecoin, to truly own our economic destiny in the digital age? ” he asked.
The new Afreximbank President vowed to preserve and build on the achievements of his predecessor, Professor Benedict Oramah, under whose guidance total assets rose to $43.5bn, revenues to $3.24bn, and net income to about $1bn.
He noted that Afreximbank’s interventions had helped deliver vaccines during COVID-19, mounted rapid responses to the Ukraine war’s economic fallout, financed the Pan-African Payment and Settlement System, and funded major industrial projects, including Nigeria’s Dangote Refinery and the African Medical Centre of Excellence in Abuja.
He pledged to grow the bank’s balance sheet to $250bn within 10 years, with some leaders pushing for an even more ambitious $350bn.
Elombi called for the mobilisation of African and diaspora wealth, including sovereign funds, pensions and private equity, to finance transformative projects at home.
He proposed a Pan-African Sovereign Wealth Virtual Fund Network to pool resources for infrastructure and industrial ventures.
He also reaffirmed Afreximbank’s partnerships with African multilateral institutions and the African Union, insisting that the continent’s success depends on cooperation and scale.
He stressed that Africa’s future lies in sourcing and processing inputs within the continent, building resilient industries, and creating sustainable jobs.
At the event, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, presided over the symbolic transfer of office and administered the oath of office for Dr. Elombi as the new President and Chairman of the Board of Directors of the African Export-Import Bank in Cairo.
Edun, who also serves as Chairman of the General Meeting of Shareholders, described the ceremony as more than a change in leadership, calling it “the dawn of a new era” in Africa’s financial sovereignty.
“Though this appointment is not merely a shift in leadership, it is the dawn of a new era, a moment that may as well have created a central role in the shifting of Africa’s financial sovereignty and its true future,” he added.
In his remarks, Edun conveyed warm congratulations from the government and people of Nigeria, praising Elombi’s rise as a symbol of resilience and renewal for the continent.
He welcomed dignitaries from across Africa and the Caribbean and underscored the coalition of nations and institutions that had been built around the Bank.
“Your presence has specified the enduring coalition that we have built, grounded in a shared vision of Africa’s development and prosperity,” he noted.
The minister paid glowing tribute to the outgoing president, Professor Benedict Oramah, whom he described as “a blessing to Africa”.
He credited Oramah with reshaping African trade and repositioning the continent on the global economic stage through initiatives such as financing special economic zones and crisis interventions.
Turning to Elombi, Edun said his appointment reflected both continuity and renewal, noting that he was stepping into office at a defining juncture for the continent.
“You are no stranger to cooperating partners. You now assume command at a time when Africa’s destiny is being rewritten through resilience and innovation,” he said. “Your appointment represents continuity. It represents renewal. It is a seamless transition from the solid foundation laid by your predecessor sitting right next to you.”
The minister stressed that Elombi’s ascension came at a rare moment when “the universe is aligned for Africa’s progress.”
He called on the new president to steward the vision of a self-reliant, integrated and prosperous Africa in line with the founding philosophy of Afreximbank.
Edun formally coordinated the signing of the official proclamation that confirmed Elombi’s investiture as Afreximbank’s fourth president.
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