Should we establish a single African currency?April 14, 2021 172899 views 14 comments 2 minutes reading time
The African Union has long advocated for economic unity and a single central bank for all African countries. Several regions have succeeded in creating regional monetary unions, which are a critical first step for the establishment of a single African currency. These include the Common Market for Eastern and Southern Africa (COMESA), Economic Community of West African States (ECOWAS), Southern African Development Community (SADC), Economic Community of Central African State (ECCAS) and the Arab Monetary Union (AMU). However, none of the above have so far delivered on this ideal.
According to the IMF, a single African currency would cushion the continent against inflation and stimulate economic growth.
We asked Carl Manlan, the Chief Operating Officer of the Ecobank Foundation, what he thought:
Former president of Mozambique, Joachim Chissano, believes that Africa has the wealth and potential to reap much from a single currency but political goodwill will play a major role if a single currency is to be realized.
We spoke to Hailemariam Boshe, the former prime minister of Ethiopia, to hear his opinion about a single African currency and the pitfalls that need to be avoided if it is to thrive.
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Image by AMISOM Public Information via Flickr