Ayirebi: Reforms, regional integration to support Africa’s resilience in 2025

African economies are set to maintain their resilience in 2025, buoyed by ongoing reforms and regional integration efforts. The Managing Director of Banking Operations at Afreximbank, Kwabena Ayirebi, shared insights in a conversation with CNBC Africa, highlighting key drivers that will support the growth outlook on the continent. Ayirebi emphasized the importance of stabilizing macroeconomic fundamentals, improved fiscal and credit landscapes, positive trade momentum, as well as structural reforms and institutional support. These factors are expected to contribute to Africa's economic stability and growth trajectory throughout the year. Inflation trends, currency performance, and central bank policies will play crucial roles in maintaining macroeconomic stability. Additionally, fiscal consolidation and growth-supportive policies are anticipated to drive economic expansion, with countries like Benin, Nigeria, and Egypt witnessing credit rating upgrades and re-entering the euro bond market. Intra-African trade is projected to continue rising, with Nigeria exhibiting a shift towards exporting more within the continent, a positive trend for regional economic integration. Notably, extra-African trade will be supported by commodity-producing economies like Ghana, driven by gold and oil outputs. Ayirebi also highlighted the role of African multilateral financial institutions in bridging the trade financing gap through tax reforms and trade facilitation initiatives. The interview further delved into the challenges faced by African countries in payment systems and trade facilitation due to exits of international banks. Ayirebi shared Afreximbank's experiences during the COVID-19 pandemic, where the bank supported trade by facilitating payments through innovative solutions. The bank's initiatives have enabled seamless trade on open account, supporting billions of dollars in trade transactions since 2022. Looking ahead, Afreximbank aims to enhance its clearing capabilities by directly participating in Renmibi clearing, which will bolster trade with China. The bank's collaborative efforts with central banks and financial institutions across Africa underscore its commitment to building trade capacity and facilitating seamless trade processes. In practice, Afreximbank employs guarantees and trade facilitation facilities to ensure secure and efficient payment systems for African countries. By collaborating with central banks and financial institutions, Afreximbank is poised to scale its initiatives and continue supporting Africa's economic growth in the long run.