President John Mahama has called for the swift establishment of key financial institutions to accelerate Africa’s economic integration and reduce reliance on foreign aid.
Speaking as the Champion of African Union Financial Institutions at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Mahama emphasized the need to fast-track the creation of an African Central Bank, an African Investment Bank, an African Monetary Fund, and a Pan-African Stock Exchange.
He highlighted the African Central Bank’s critical role in fostering economic cooperation by introducing a common monetary policy and a single African currency.
“By mobilizing resources, facilitating trade, and financing infrastructure projects, these institutions can reduce dependence on external aid and create a self-sustaining economic ecosystem for Africa. The African Central Bank is expected to establish a single African currency, reducing exchange rate risks and enhancing investment flows across the continent,” Mahama stated.
Progress on the African Monetary Institute
President Mahama also revealed advancements in establishing the African Monetary Institute (AMI), which will serve as a precursor to the African Central Bank.
“I am pleased to inform you that the ministers of finance and central bank governors have endorsed the draft statute of the African Monetary Institute (AMI) through the specialized technical committee on finance, monetary affairs, economic planning, and integration. The AMI will conduct essential preparatory work, including technical and legal assessments, while ensuring the implementation of macroeconomic convergence criteria.”
Role of Key Financial Institutions
The African Investment Bank (AIB) is expected to mobilize resources from African and global capital markets to finance investment projects across the continent, driving economic growth and regional integration.
Meanwhile, the African Monetary Fund (AMF) will work to eliminate trade restrictions, enhance monetary integration, and provide financial assistance to AU member states.
“The Fund will prioritize regional macroeconomic objectives in its lending policies while providing financial support to AU member states,” he noted.
Mahama also underscored progress toward establishing a Pan-African Stock Exchange, which aims to integrate capital markets and improve investment flows within Africa.
“The Pan-African Stock Exchange will integrate capital markets, making it easier for businesses to raise capital while enhancing liquidity, promoting intra-African investments, and providing alternative financing mechanisms for governments and the private sector. Progress is being made, with the Commission and the African Securities Exchanges Association working on the Exchange’s linkages project,” he added.
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