We shall not be the horse of the riders from the West

African businessmen very often come up against a banking system that constitutes an insuperable obstacle. Who can handle taxes that result in borrowed capital doubling every five years?

by Cardinal Bernard Agré

Cardinal Bernard Agré

Forwarding the development of Africa, the forgotten continent, the continent sodden with bad news, as they say, constitutes a problem of rare complexity. And yet there is no lack of natural resources: abundant products of the soil and underground, the existence of a very respectable intellectual elite and capacities of economic management.
An elite trained at the universities and the most prestigious local schools, but also at universities and at the most distinguished schools in the West. Without mentioning that many of this elite are well-known in Europe and America for their skills and creativity.
These skilled and motivated Africans are very often capable of undertaking enterprises aimed at the development of the continent. But, apart from problems of the marketplace that are often a drag on their impetus because of very strong foreign competition, increased by the sacrosanct laws of globalization, African businessmen very often come up against a banking system that constitutes an insuperable obstacle. It is a commonplace to accuse Africans of bad financial management. But there are, as on all continents, encouraging exceptions. Today, in Africa, there are capable operators and good businessmen. But how can they get access to the credit that is a fundamental lever throughout the world for enterprise and development? The banks, generally, have their headquarters in Europe and follow the policy of their home country. And even when African businessmen present feasible plans to the branches of these banks sited in our countries, they can be faced with refusal, categorical or polite, because of national priority interests.
One also has to point out that the rates of interest applied in the Ivory Coast, for example, just to mention a country I know well, are very steep. The interest rates demanded are never less than 17-20%. Who can handle taxes that result in borrowed capital doubling every five years?
That fact entirely discourages access to credit. One also needs to be aware that the banks often take no risk because, before advancing a loan, they demand guarantees that already cover the loan asked. This system must be reviewed and corrected if we want to give a chance to capable people who want to transform the raw materials of which Africa can boast to be the first or second producer in the world, and assure a plus value. Africa is giving signs of being tired of being merely a producer of raw materials. I invite all those who can help to bring in a more human solution, one more beneficial than the present one, to work together to help Africa take up responsibility for its own development.
It would be a good thing, when speaking of Africa, to get beyond ideological notions and get on to concrete commitment. Such notions keep Africa in its underdevelopment and, indeed, they set it in reverse. Effective commitment frees it and makes it a real partner in it. Then the West and Africa will no longer have the relationship of horse and rider – Africa always being the horse - but relations of mutual respect and real friendship.

This talk was given by cardinal Bernard Agré on 21 May during the course of a day of study and reflection on“The economic and social development of Africa in an era of globalization”,organized in the Vatican by the Pontifical Council for Justice and Peace