By Burnett Munthali
Ghana President John Mahama has called on African leaders to expedite the creation of a Pan-African payment system, emphasizing that the continent cannot achieve full economic integration while relying on foreign currencies for trade.
Speaking at the African Union summit in Addis Ababa, Mahama stressed the need for African countries to shift towards using their own local currencies for trade, rather than relying on the US dollar. This move, he believes, would be a significant step towards reducing the continent’s dependence on external financial systems.
The Ghanaian president’s appeal is closely tied to the African Continental Free Trade Area (AfCFTA) agreement, which aims to create a single market for goods and services across the continent. Mahama argued that the implementation of a Pan-African payment system would greatly strengthen the AfCFTA and pave the way for deeper economic integration.
Mahama’s call is part of a broader effort to promote economic self-reliance and intra-African trade. By using local currencies, African countries can reduce transaction costs, increase trade volumes, and foster economic cooperation. The move is also seen as a way to mitigate the risks associated with exchange rate fluctuations and improve the continent’s economic resilience.
The African Union has been working towards creating a Pan-African payment system, and Mahama’s call is expected to give the initiative a boost. The system is expected to facilitate cross-border transactions, promote trade, and enhance economic integration among African countries.
As Africa continues to grow and urbanize, the need for a robust and integrated payment system has become increasingly urgent. Mahama’s call is a timely reminder of the importance of self-reliance and cooperation in achieving the continent’s economic aspirations.