African leader commit to accelerate establishment of African Monetary Union

Addis Ababa, February 17, 2024 (FBC) – The African Union Heads of State and Government affirmed commitment to accelerate the establishment of an African Monetary Union by harmonizing monetary zones and creating three African Union financial institutions: the African Central Bank (ACB), the African Monetary Fund (AMF), and the African Investment Bank (AIB).

The heads of state and government have also deliberated on how to create a Pan-African Stock Exchange (PASE).

“If we had the African Central Bank with one currency, the levels of intra -African trade would be higher than they are today, and would be better positioned to attract investments, “Albert M. Muchanga, Commissioner for Trade and Industry for the African Union, Commission, said.

“If we had the African Investment Bank and the African Stock Market, there would be financial depending in Africa. The African Capital Market would be better developed than it is today, and would have borrowers within Africa,” he elaborated.

“And when we establish the African credit agents, that market would develop better. If we have the African Monetary Fund or the African Financial Stability Mechanism, would be better positioned to stabilize our economies,” he added referring to the establishment of the African Monetary Union.

Dr. Hanan Morsy, Deputy Executive Secretary and Chief Economist of the United Nations Economic Commission for Africa, said the formation of the monetary union will reshape world’s financial architecture for the advantage of the continent.