South Africa Pushes for a single African Currency to strengthen Intra-continental trade
South Africa, one of Africa’s largest economies; has reaffirmed its need for a solitary African currency to help boost intra-continental trade. The Minister for International Relations and Cooperation, Naledi Pandor disclosed the country’s position on the much-expected policy.
Pandor said “In all available continental platform, South Africa has always reaffirmed her obligation in continuing to promote the continental integration; by the provisions of the Abuja Treaty of 1991 which seeks to help the AU member states to overcome trade barriers; that impede the flow of goods, services, and capital,”
The minister marked as ‘important’ the establishment of the African Union Financial Institutions (AUFIs) in line with efforts towards a single currency.
She further listed some contributory efforts and measures taken by South Africa towards the creation of the currency. She also disclosed the readiness of her country to support future efforts geared towards this agenda.
Pandor said “During the 12th Extraordinary session of the AU Assembly in July 2019 in Niamey; Niger, South Africa supported the launch of the operational instruments of the African Continental Free Trade Area AfCFTA; which included amongst others the digital payment system,”
She added that “her country reaffirms its readiness to work with all stakeholders and in cooperation with other AU Member states to ensure that all outstanding technical issues are addressed expeditiously.”
The African Continental Free Trade Area (AFCFTA)
The AfCFTA is a type of trade area that is free and it was established in 2018. It was established by the African Continental Free Trade Agreement among 54 of the 55 African Union nations. The trade started on the 1st of January 2021.
The free-trade area is the biggest in the world in terms of the number of participating countries; since the emergence of the World Trade Organization.
Ghana serves as the Secretariat of AfCFTA and was commissioned and assigned to the African Union by the President of Ghana Nana Akufo-Addo on August 17, 2020, in Accra.