Dear President Muhammadu Buhari,
The above subject refers.
Your Excellency, I humbly wish to present to you an extract of my Doctor of Philosophy (PhD) Economics thesis recommendations to establish African International Fund (AIFund) from the above stated university, a thesis which Idefended today, Friday, July 17, 2020.
The dire need or reasonableness of establishing the AIFund is inexorable to rehabilitate and revamp the coronavirus disease (COVID-19) devastated economies of the fifty-four (54) African nations to complement the developmental efforts of African Development Bank (ADB) and to enable Africa cushion the effects of shutdowns of its economies due to the dreaded pandemic.
Sir, I write for the second time with the highest sense of humility and respect for your exalted and prestigious office. My first letter dated December 11, 2019, advocated for new social order for Nigerians. Like the first letter, the rationale behind this is the question “how can you as a Tertiary Education Trust Fund (TETFund) foreign scholar transform Nigeria?” This was the question Chief Uchenna K.Ufearoh asked, he was the team leader of TETFund visitation panel and TETFund Board of Trustee member representing the South East who met us Nigerian TETFund scholars in EMU, Famagusta, North Cyprus, Turkeyon October 15, 2019. This second letter, a recommendation extract from my PhD thesis is thus suggesting an establishment of the AIFund towards setting up the post-COVID-19 African economy recovery bank and consequently establishes a new Africa from the continental economic recession.
My recommendation for the establishment of the AIFUND is similar to the rationale behind the establishment of International Monetary Fund (IMF) and World Bank in 1944
Your Excellency, the COVID-19 pandemic has killed hundreds of thousands of people across the world. Johns Hopkins University records show countries of the world has over twelve million confirmed cases of the killer disease as at July 9, 2020 while as at July 1, 2020 BBC News records 404,796 total cases with 10,147 deaths in Africa.
My recommendation for the establishment of the AIFUND is similar to the rationale behind the establishment of International Monetary Fund (IMF) and World Bank in 1944; rehabilitation and reconstruction of the war-ravaged countries of post-World War II era. The two United Nations institutions founding members were basically few, though membership later increase to about 168 countries.
Mr President sir, the purpose of the Fund shall be to stimulate macroeconomic stability, sustainable shared inclusive growth and balanced development in Africa in the post-COVID era. The objective of the Fund shall be to foster African monetary cooperation in order to actualise African economic integration and fortify the agreement establishing the African Continental Free Trade Agreement (AfCFTA).
Your Excellency, it will be appropriate for Nigeria to take a lead role as pioneer member of AIFund.
The other objectives of the Fund shall be to:
- Foster stability of exchange rates among member currencies and their mutual convertibility;
- Rectify imbalances in the balances of payments of African States;
- Strengthen capacity building in the implementation of debt management policies in Africa;
- Serve as a financial unit of African Union (AU) or a sister-bank to African Development Bank (ADB) which shall specifically and undoubtedly serve as stimulant Fund to recover African states’ economies from global recession;
- Fund and improve education, health, agricultural and industrial production among other sectors of the economy in Africa in the post-COVID era.
- Augment oil trade. The significant drop in oil production/exports and oil demand/imports (that is twin supply-demand shock) due to port closures in Africa and across the world, akin with industrial and agricultural production as a result of mass production shutdowns and supply chain disruptions of the coronavirus disease (COVID-19) crisis has negatively impacted on African economies during the global lockdown.
- Adopt a reference currency to foster monetary union for the continent. This is achievable after the five blocs of the continent have adopted their respective regional currencies.
Your Excellency, it will be appropriate for Nigeria to take a lead role as pioneer member of AIFund. This will automatically guarantee securing for Nigeria choice of location for the Fund headquarters and establish regional offices in the West, Central, Northern, Eastern and Southern Africa. The post-COVID-19 era Bank need to be located in an Anglophone country relatively necessary as ADB is located in Cote d’Ivoire, a Francophone country.
Founding members of the Fund may comprise the G-5 of Africa – Nigeria, South Africa, Egypt, Algeria, and Morocco, a selection attributed to 2019 Gross Domestic Product (GDP). As Federal Government of Nigeria start lying foundation stone of AIFund with big take-off, other fast growing economies (G-5+) in Africa will follow suite and will later capture membership of all African Union.
Sir, the urgency attached to this proposal cannot be overemphasized. Upholding this advocate is additional credit to your footprints on the sands of time as first President in the world to pioneer an establishment of a continental bank to ameliorate post-COVID-19 era of African economies recession.
Thanks for your time.
Yours faithfully,
*Alao is a Senior Lecturer in the Department of Economics, Adeyemi College of Education, Ondo, Nigeria and a graduating Ph.D. Economics student from Eastern Mediterranean University (EMU), Famagusta, North Cyprus, Turkey+905338244270, +2348055795353, [email protected])
