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Financial Derivatives CEO: What Okonjo-Iweala’s WTO appointment means for Africa
Nigeria’s Former Finance Minister, Ngozi Okonjo-Iweala, has been selected as the Director General of the World Trade Organisation, a position she will occupy until August 2025. This comes in a year where Africa is forging ahead with the continental trade pact. Meanwhile, Nigeria’s headline inflation rose to 16.47 per cent in January from 15.75 per cent in December. Bismarck Rewane, CEO of Financial Derivatives joins CNBC Africa for more.
Tue, 16 Feb 2021 11:57:52 GMT
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AI Generated Summary
- Dr. Okonjo-Iweala's historic appointment as WTO Director General signifies a significant step for African representation and multilateral trade advocacy.
- Africa must prioritize boosting productivity, intra-continental trade, and transparent governance to enhance its global trade share and economic growth.
- Nigeria struggles with persistent inflation driven by monetary policy failures, exchange rate fluctuations, and supply chain disruptions, necessitating strategic solutions for stabilization.
Nigeria's Former Finance Minister, Dr. Ngozi Okonjo-Iweala, has been selected as the Director General of the World Trade Organization, a position she will occupy until August 2025. This comes as Africa is moving forward with the continental trade pact. Bismarck Rewane, CEO of Financial Derivatives, shared insights on what this appointment signifies for Africa and delved into Nigeria's escalating headline inflation, reaching 16.47 percent in January. The landmark appointment of Dr. Okonjo-Iweala is significant for Africa, as an African, Nigerian, and female leading the WTO amidst a shift from bilateral to multilateral trade. With her expertise in multilateral agencies and experience as a former finance minister, she is primed to advocate for fair trade practices worldwide. Particularly crucial is Nigeria's need to reduce trade barriers as it ratifies the African Continental Free Trade Agreement. Rewane emphasized Africa's need to boost productivity and competitiveness to increase its GDP contribution and global trade share. Strengthening intra-African trade, investing in infrastructure, and fostering transparent governance are vital for the continent's economic growth. Regarding global trade challenges, a key focus is aligning currencies and mitigating competitive devaluation to ensure equitable trade. Regional trade blocs such as the European Union, North American Free Trade Agreement, and Asia-Pacific arrangement will play pivotal roles. On Nigeria's inflation surge, the country grapples with a 17-month consecutive increase, hitting a four-and-a-half-year high at 16.47 percent in January. Failed monetary policies, including government borrowing from the central bank, exchange rate fluctuations, supply chain disruptions, rising fuel prices, and tariff adjustments, drive this inflation. Rewane proposed solutions like bolstering forex supply, reopening borders, promoting investments, enhancing ease of doing business, and potentially raising interest rates to curb inflation. As Nigeria navigates economic challenges and Africa aims for trade advancement under Dr. Okonjo-Iweala's leadership, strategic reforms and policies are critical for sustainable growth and stability.
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