President Ruto takes over as COMESA chair, announces Ksh.12.9B boost to African financial institutions

Kenya has increased its shareholding in the Trade and Development Bank (TDB) by $100 million (Ksh.12.9 billion), an African multilateral financial institution, President William Ruto has announced.

Additionally, he said Kenya had also committed $50 million (Ksh.6.5 billion) to Afreximbank as share capital, demonstrating the country's commitment to empowering African financial institutions.

As a result of Kenya's enhanced shareholding in TDB, the country can now access long-term financing to be repaid in up to 25 years at interest rates as low as 2 per cent.

The president explained that African-led financial institutions are proving to be the continent’s true partners in progress.

“By strengthening and capitalising these entities, we are deepening regional financial integration and ensuring that Africa’s development is financed on terms that reflect our realities, our priorities, and our aspirations,” he said.

President Ruto made the remarks during the official opening of the 24th COMESA Summit of Heads of State and Government at the Kenyatta International Convention Centre in Nairobi on Thursday.

Presidents Évariste Ndayishimiye of Burundi and outgoing Comesa chair Azali Assoumani (Comoros), Emmerson Mnangagwa (Zimbabwe), and Prime Ministers Ahmed Abiy (Ethiopia), Russell Mmiso Dlamini (Eswatini), and Mustafa Madbouly (Egypt) were present.

Others in attendance included African Union Commission Chair Mahmoud Youssouf, COMESA Secretary-General Chileshe Mpundu Kapwepwe, and Secretary-General of the African Continental Free Trade Area Wamkele Mene.

President Ruto explained that the most viable pathway for Africa and regional economic blocs like COMESA is to strengthen African homegrown multilateral financial institutions.

These include the TDB, Afreximbank, Africa Finance Corporation, Shelter Afrique, Africa Reinsurance, the African Trade and Investment Development Insurance, and PTA Reinsurance Company (ZEP-RE).

“These institutions embody our collective determination to mobilise African capital for African priorities,” he said.

President Ruto noted that Africa’s development objectives hinge on access to equitable, affordable, and sustainable financing mechanisms that promote inclusive growth and long-term transformation, not cycles of debt and dependency.

The president explained that the global financial system remains trapped in the architecture of a bygone era.

“Institutions such as the IMF and the World Bank, conceived in the aftermath of the Second World War 80 years ago, continue to be dominated by wealthy nations, resulting in persistent inequities and a limited voice for developing countries,” he said.

President Ruto called on African states to work together towards continental integration that goes beyond trade agreements and shared markets to the free movement of people, goods, and services.

The president explained that for intra-African trade to increase, the continent must address visa restrictions that continue to hinder the free movement of people.

He said it was disappointing that Africa contributes only 3 per cent to global trade, and only 14 per cent to intra-African trade, compared to intra-European trade, which is at 70 per cent and Asia at 60 per cent.

“The reason why we are not trading with ourselves is because we have unlimited barriers,” he said.

In the European Union, he pointed out, 27 countries have a single visa, and their citizens can move more freely. On its part, COEMESA also has 27 countries but with 27 visas.

“How are we going to catch up with the rest of the world?” he asked.

“We must move from competition among ourselves to cooperation and collaboration, and from exporting raw materials to building value chains that retain wealth within our borders."

The president said Kenya had removed travel restrictions for Africans to the country, and, consequently, visitors to the country have since doubled.

He called on other African countries to remove visa restrictions to allow free movement of people across the continent.

“We are optimistic that our sister countries across the continent will take similar bold steps so that, together, we may unlock the full potential of a borderless, connected, and prosperous Africa,” he said.

The president noted that this year's theme, Leveraging Digitalisation to Deepen Regional Value Chains for Sustainable and Inclusive Growth, is not only timely but also relevant to current global challenges and opportunities.

He appealed to COMESA member states to invest in digital infrastructure, data governance, and human capacity building to empower citizens to thrive in the digital economy.

At the same time, President Ruto took over the chairmanship of COMESA from President Ndayishimiye.

The president commended President Ndayishimiye for driving remarkable progress under his leadership.

“You have advanced our shared vision of integration and cooperation with diligence and dedication. For this, we owe you our collective appreciation and deep respect,” he said.

The president pledged to build on his achievements and work with every member state as a committed and collaborative partner.

“In accepting the chairmanship of this great common market, I pledge to serve as a dedicated, energetic, and collaborative partner, working with each of you to advance the Comesa vision of shared prosperity, integration, and transformation,” he said.

On his part, President Ndayishimiye commended COMESA member states for their support during his tenure.

He assured President Ruto of his support and that of his government, pointing out that he was confident that under the leadership of President Ruto, the vision of COMESA as an integrated and competitive bloc that transforms lives would be realised.

The vice-chairmanship will be held by Zimbabwe under the leadership of President Mnangagwa.

President Mnangagwa called on COMESA members to harness their collective strength and leverage the opportunities available to propel the regional bloc to new heights.

“Together, let us deliver on the promise of a better future for our people and our mother continent, Africa,” he said.

Prime Minister Abiy said Africa must take advantage of regional blocs like COMESA and work with a common purpose to unlock the continent’s vast potential.

“For Africa, now is not the time to wait and watch. We have the people, creativity, and natural wealth to build a prosperous and fair future,” he said.