Aigboje Aig-Imoukhuede, chairman of Nigerian tier-1 lender Access Bank Group and financial services holding company Coronation Group, argues that African financial institutions must move beyond financial stability to productive finance, unlock capital tied up in commercial transactions and build banking systems capable of operating across borders.
Africa’s financial institutions have spent years debating the availability and cost of capital. However, Aig-Imoukhuede believes the continent is asking the wrong question.
Rather than focusing primarily on how much capital Africa can attract, he wants policymakers and financial institutions to examine how effectively the money already available is being deployed.
“At this particular moment in Africa’s development, I believe the more important question is: How do we make better use of the capital we already have?” he said during the closing session of the Africa Financial Industry Summit (AFIS) in Luanda, Angola.
His argument is that the continent’s financial systems must become better at connecting existing capital to businesses, productive economic activity and long-term investments. Without that shift, financial stability and stronger banking institutions may not translate into the broader economic prosperity Africa needs.
Aig-Imoukhuede outlined three priorities for achieving this: unlocking capital trapped in commercial transactions, mobilising long-term savings for long-term investments, and addressing government borrowing that limits the private sector’s access to financing.
The money trapped in commercial transactions
One of the biggest opportunities, in his view, lies in the financing of small and medium-sized enterprises (SMEs).
Across Africa, businesses generate significant economic value through production and commercial activities, often in cycles lasting 90 to 120 days. Yet smaller businesses that supply goods and services to larger companies frequently struggle to access financing.
A supplier may fulfil an order for a large corporation and record a credible commercial transaction on its books, yet still face liquidity constraints because its own credit profile is weaker than the buyer’s.
Aig-Imoukhuede believes financial institutions should change how they assess such transactions.
“When an SME supplies goods or services to a creditworthy buyer, that transaction should enable the SME to access financing at a rate that reflects the creditworthiness of the buyer, rather than the weaker credit profile of the small supplier,” he said.
In effect, the commercial transaction itself could become the basis for accessing credit, allowing smaller businesses to benefit from the financial strength of the larger companies they supply.
He pointed to digital invoicing as an example of the infrastructure that could make this possible, citing more than three billion registered invoices in India, following the introduction of digital invoicing a decade ago, and approximately 60 billion in Brazil.
He argued that Africa could unlock significant economic value by developing similar systems, particularly given the continent’s large population of SMEs and sole traders.
The proposal requires central banks, commercial banks and other financial institutions to reconsider how they assess creditworthiness. Instead of relying primarily on the financial standing of individual small businesses, lenders could use verified commercial transactions and the buyer’s strength to support financing.
That would address a persistent constraint for smaller suppliers: the gap between generating revenue and receiving payment.
Why long-term projects need long-term money
A second priority is mobilising savings for investments that require longer financing terms.
Aig-Imoukhuede argued that banks cannot continue to rely heavily on deposits that customers can withdraw at short notice to finance projects requiring capital over 20 years.
“We cannot continue to rely on bank deposits, which can be withdrawn tomorrow, to finance long-term projects that require 20-year money,” he said.
He believes there is an appetite among Africans for longer-term economic opportunities, but the financial channels linking their savings to such investments need to be developed.
He cited the Dangote Refinery as evidence that investors are willing to participate in major real-sector projects and earn returns from economic activity.
The challenge, therefore, is not simply encouraging people to save, but creating investment structures that enable their savings to finance productive assets over appropriate time horizons.
This would require financial institutions and markets to provide avenues for ordinary investors to participate in major projects, rather than leaving such opportunities to a relatively small pool of investors.
His argument also raises a broader question about the role of African pension funds and other institutional investors. These pools of capital could play a greater role in financing infrastructure and productive assets instead of remaining heavily concentrated in government securities.
Government borrowing and the private sector
A third constraint is the extent to which government borrowing competes with private businesses for available financing.
Aig-Imoukhuede acknowledged that governments have legitimate funding requirements, but warned that public borrowing can limit the capital available to businesses.
He argued that central banks cannot address this challenge in isolation. Collaboration among monetary authorities, fiscal policymakers, and the private sector is necessary to achieve a more sustainable balance between government financing needs and private-sector investment.
He suggested that central bank governors and finance ministers should work together more deliberately on the issue.
The underlying concern is that a financial system can remain stable while failing to provide sufficient financing for businesses capable of expanding production, creating jobs and supporting economic growth.
As he put it, a banking system can be safe and profitable but still serve an economy that is fundamentally unproductive.
African banks must compete beyond their home markets
Aig-Imoukhuede also challenged African banks to look beyond the growing presence of locally owned institutions and focus on their ability to compete internationally.
The departure of several international banks from African markets has created opportunities for domestic and regional financial institutions. But he argued that African ownership alone should not be treated as evidence of progress.
“Is it enough that an international bank has exited Africa and an African bank has taken its place? No, it is not,” he said.
The next challenge, he argued, is to translate the scale of African banks into globally competitive institutions capable of serving customers across multiple markets.
He said African banks must develop stronger regional strategies and cross-border operations, while establishing the infrastructure needed to connect African businesses and individuals to the global financial system.
“We must be present in the G7 countries. We must have clearing status and establish clearing infrastructure, whether digital or through other channels, that allows African businesses and citizens to remain connected to the global economy,” he said.
His comments point to a distinction between having African-owned banks operating in individual countries and building institutions capable of supporting businesses across borders and competing with international financial groups.
For Aig-Imoukhuede, the latter is the more consequential ambition.
Financial integration cannot happen without the movement of people
The argument for stronger African banking institutions is closely linked to his broader call for continental integration.
Aig-Imoukhuede said the discussion about African integration should not be limited to the prospect of a common currency. Before a monetary union can become meaningful, countries must address the practical barriers that restrict the movement of goods, services, capital and people.
He illustrated the problem with his own experience at the summit. His chief of staff could not travel with him to Angola because he was unable to obtain a visa in time.
The experience, he said, exposed the contradiction in discussing continental integration while movement between African countries remains difficult.
“We cannot build an integrated African banking industry or financial system without integrating the movement of goods, services and people,” he said.
He argued that integration must precede monetary union, requiring countries to establish the practical conditions for businesses, investors and individuals to operate across borders.
That includes functioning financial infrastructure, more effective settlement arrangements and cooperation between regulators.
Without these systems, African banks may expand into more countries without delivering the full benefits of an integrated market.
Making capital count
Aig-Imoukhuede’s proposals ultimately return to one central issue: Africa must improve the connection between its available capital and the economic activities that need it.
He called for a more productive financial system, the integration of African financial markets, and greater macroeconomic convergence, including improved alignment of inflation and economic stability across countries.
He also challenged the continent to reconsider who benefits from financing major investments. The Dangote Refinery, in his illustration, should not remain an isolated example of large-scale capital mobilisation. More Africans should be able to invest in and benefit from transformative projects.
He framed the test of progress over the next 10 to 20 years around whether African businesses can raise capital efficiently across borders, whether pension funds can make more meaningful investments in infrastructure and productive assets, and whether the continent can finally make its available capital count.
For Africa’s financial institutions, the implication is clear: attracting more money will not, on its own, resolve the continent’s financing constraints. The greater task is to build the systems that enable existing savings, commercial transactions, and institutional capital to reach productive businesses and investments.