In a conversation with Kenneth Igbomor of CNBC Africa, Mustafa Chike-Obi, Chairman of Fidelity Bank Plc, emphasized the need for Africa to unite and collaborate for economic prosperity.
Chike-Obi was speaking on the sideline of the 31st African Export-Import Bank (Afreximbank) Annual Meetings being held in Nassau, The Bahamas.
He noted that Africa must work together, leveraging its collective strengths to compete globally.
He highlighted the significance of the African Continental Free Trade Area (AfCFTA) in driving sustainable development, stating that true economic growth will only come from integration and shared efforts.
Chike-Obi said Africa has tremendous opportunities due to its abundant natural resources and large population.
According to him, these are significant strengths for the continent adding that Africa has been hindered by a lack of focused and sharp leadership.
“It is crucial to understand where we have competitive advantages and to produce goods and services competitively and efficiently.
We need to identify and focus on the sectors where we can be globally competitive in producing goods and services. This will enable Africa to realize its full potential. Collaboration is key,” he said.
Intra-African travel and business interactions
Chike Obi called for a concerted effort to simplify travel and business interactions within Africa, stressing that such cooperation should transcend mere rhetoric.
He highlighted the current difficulties faced by Nigerians traveling within the continent, contrasting this with the relative ease of traveling to Europe or Asia.
He noted that intra-African travel remains a significant challenge, adding that it is often easier to travel to China than to another African country, despite the abundant opportunities within our own continent.
Chike-Obi who noted that the situation needs to change, emphasized the need for practical measures to ease travel and business operations within Africa.
He pointed out that complicated travel documents and regulations are major hindrances, and called for their simplification.
“Recognizing that we are all in this together, we need to support each other better by simplifying these processes,” he said.
Chike-Obi also emphasized the importance of including the Caribbean in discussions about economic collaboration.
He advocated for making interactions between African countries and the Caribbean more seamless and friendly, fostering collaboration rather than competition.
According to him, conferences like this are valuable because they bring together people from across Africa to discuss and solve these issues.
He stressed that the ultimate goal should be the seamless movement of goods and services within Africa, which would enhance the continent’s competitiveness on the global stage.
He proposed a strategic focus on Africa’s strengths, particularly in the energy sector.
Power policy across the continent
He called for an integrated power policy across the continent, suggesting that countries with cheaper production costs should supply power to their neighbors.
“Africa should never face power supply issues again,” he asserted. “If power is cheaper to produce in Nigeria, let Nigeria supply power to West African countries.
If Kenya can produce cheaper power, let Kenya supply it. We must address our power challenges collectively, without political interference.”
To achieve this, Chike-Obi called for a unified 10-year plan to resolve the power supply issue across Africa.
He noted that by working together and removing politics from the equation, Africa can ensure that no nation experiences power cutoffs.
“This integrated approach will significantly boost our competitiveness and economic growth,” he said.
Banking regulations across Africa
Chike-Obi has expressed his views on the recent banking capitalization rules implemented in Kenya, drawing parallels with similar regulations in Nigeria.
While he admitted to not having reviewed the specifics of Kenya’s new rules, he provided insights based on the Nigerian framework.
“When Nigeria states that international banks should have higher capital than national banks, it appears they are referring to Nigerian banks with branches in Africa,” Chike-Obi remarked.
Chike-Obi highlighted that 95% of the international branches of Nigerian banks are located in Africa, emphasizing the need for incentives to support this expansion.
According to him, a branch in Kenya should be regarded the same way as a branch in Lagos or Maiduguri, and they should all be treated equally.
Advocating for a coordinated policy, Chike-Obi called for banking regulations that encourage operations in other African countries with less stringent capital requirements.
He believes this approach would be beneficial for the continent’s economic integration and growth.
“Furthermore, we need a comprehensive African policy that addresses various aspects of banking, including rules, requirements, and capitalization,” he said.
He stressed the importance of considering these issues in the context of African-Caribbean integration, noting that the successful integration of these regions involves many interconnected factors.
Watch the full interview here: https://www.cnbcafrica.com/media/6355014775112/chike-obi-africa-needs-to-be-competitive-/
