Sarah Alade: Promoting inclusive growth and transformative
development in Africa
Welcome address by Dr Sarah Alade, Acting Governor of the Central Bank of Nigeria, at the
Caucus Meeting of African Central Bank Governors on "Industrialization For Inclusiveness
and Transformative Development in Africa", as part of the 7th Joint Annual Meeting of The
AU Conference of Ministers of Economy and Finance and ECA Conference of African
Ministers of Finance, Planning and Economic Development Sideline, Abuja, 27 March 2014.
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Her Excellency, the Chairperson of African Union Commission,
His Excellency, the Executive Secretary of UNECA,
Honourable Governors,
Distinguished Delegates,
Ladies and Gentlemen
1. It is my pleasure to welcome you all to the first caucus meeting of African Central
Bank Governors, holding on the sideline of the 7th Joint Annual Meeting of the UNECA AU
African Ministers of Economic, Finance, Planning and Economic Development. I hope you
had a pleasant trip to Abuja, Nigeria.
2. Distinguished Colleagues, you will recall that this caucus meeting came into being
by our collective desire to be part of the solution to Africa's growth and development agenda.
As African Central Bank Governors' we made it known that we wanted to play both active
and supportive role where necessary in setting the African agenda during annual economic
planning and development conference in Africa. This initiative, therefore, places higher
responsibility on us to contribute in steering policy dialogue and implementing the agreed
recommendations that would emerge from such deliberations. It places ownership and
makes coordination and implementation easier as all stakeholders are in agreement.
3. I am delighted that this meeting would provide a platform for African Central Bank
Governors to provide input in the design and implementation of effective strategies to
promote industrialization for inclusive growth and transformative development in Africa.
4. Accordingly, the meeting has pooled together, a team of highly resourceful and
knowledgeable professionals from Central Banks, UNECA, AUC, World Bank, IMF, and other
development institutions to address the theme of the conference.
5. Honourable Governors, Distinguished Delegates, Ladies and Gentlemen, it is
important to state that African Central Banks are inundated with several global challenges
such as; the aftermaths of 2007/2009 global financial crisis; incessant natural disasters like
flooding with the resultant effect of rising food prices; exchange rate volatility due to
dependence on primary commodity exports for revenue; capital reversal inflow as a result of
tapering in the US, among others.
6. Despite these daunting challenges, most African Central Banks recorded relative
success in keeping inflation within a tolerable threshold, which could be attributed to effective
and proactive monetary policy stance.
7. However, there is still room for improvement, especially, in the achievement of the
primary convergence criteria for sub-regional integration. In this regard, all member countries
are advised to strive to meet their respective sub-regional convergence criteria, which is a
precursor to African Monetary Cooperation and adoption of Single Currency.
8. The theme of this meeting is in tandem with the conference theme, and the agenda
for deliberation is structured to elicit discussions that are invaluable in shaping policies in the
region. The agenda that will form the basis of today's deliberation include "The
Appropriateness of the mandates of the Central Banks for Africa's Industrialization", "The
Need for Payment System Inclusiveness for Financial Stability and Transformative
Development in Africa", "Central Banks' Strategies for Promoting Investor Confidence and
Industrial Development in Africa", and The Role of Central Banks in Financing Infrastructure
for Industrial Development".
9. First, we will deliberate on the appropriateness of the mandates of the central banks
for Africa's industrialization agenda. One major issue in Africa is whether the attention of
central banks should focus on price stability and financial stability only or should Central
Banks in the region be concerned about developmental goals. Although the focus on price
and financial stability has served us well in containing inflation and deepening the financial
sector, it has not been able to bring down unemployment or achieve inclusive growth on the
continent. This has led to many social problems and general restiveness. As Central Banks,
we must find a way to work together to solve this problem, suggesting developmental role
must be part of the agenda of Central Banks on the African continents. Programs such as
improving access to finance, promoting financial inclusion and have targeted interventions in
the economy must be considered.
10. Second, we need to access the need for payments systems inclusiveness for
financial stability and transformative development in Africa. Realistic economic
transformation and industrial development would entail greater participation of the private
sector in the process of development, through improvements in the payments system and
improved access to credit. Recent technological innovations in mobile banking have provided
opportunities for financial inclusion, with clear implications for financial stability.
11. The third focuses on Central Banks' strategies for promoting investor confidence
and industrial development in Africa. The most effective channel for industrial development is
greater private sector participation. In view of this, it has become vital for African countries to
promote investors' confidence in their respective economies. This requires promoting
transparent and favourable macroeconomic environment which is crucial for private sector
participation. Steps would have to be taken by African central banks to reposition themselves
as reputable and transparent institutions.
12. Ladies and Gentlemen, the final session dealt with establishing the role of central
banks in financing infrastructure for industrial development. African countries are plagued by
gross infrastructure deficit, and most interventions are largely dependent on annual
government budget which can hardly bridge the infrastructure deficit gap. It has been said
that infrastructure is a precursor for industrial development. African central banks need to
develop strategic agenda for complementing fiscal policy, to bridge the wide infrastructure
financing gap in the continent. This is an area that we can contribute in by finding creative
financing model to help bridge this gap.
13. Ladies and gentlemen, I am aware that experienced resource persons have been
assembled to lead discussions on these complex issues enumerated above. On this note, I
implore all participants to take full advantage of this meeting by contributing effectively to the
discussions. It is my hope that your deliberations would reveal series of policy options to
effectively and efficiently promote industrialization for inclusive and transformative
development in Africa.
14. Distinguished Colleagues, Ladies and Gentlemen, I wish you all a successful and
fruitful deliberation.
15. Thank you for listening.