Should we establish a single African currency?

April 14, 2021 39367 views 14 comments 2 minutes reading time
Should we establish a single African currency?

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 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 a single currency.

According to the IMF, a single currency in Africa 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 currency in Africa and the pitfalls that need to be avoided if its currency is to thrive.

Should we establish a single African currency? Let us know your thoughts and comments in the form below and we’ll take them to policymakers and experts!

Image by AMISOM Public Information via Flickr

Comments

OJ
A big YES since Europe has Euro why not Africa to have their own continental currency

SM
Yes. It would unite us and make trade more efficient.

SK
Yes we want Africa single currencies and single language

JB
Yes

LN
A single currency can do wonders for our continent, save us a lot of money spent in exchanging monies to none African currency to transact with each other. AfCFTA shall be greatly helped by a single currency. We have the expertise of Africans in this space and lessons Europe to do it. The strength of our collective shall be a force to be reckoned.

GF
So that its value can compete the western world against our everyday depreciation

GF
Yes

OO
Yes

LD
We can scrub all other currencies and maintain a common one like say african dollar

SB
No

IZ
There will be too many conflicts and hard to manage.

BD
Yes

IZ
There will be too many conflicts and hard to manage.

AN
In principle it's a great idea. It would facilitate trade across the continent, but the project is fraught with problems. Just look at the eurozone. In order to truly ensure it works all countries need to be on an equal economic footing, which isn't the case across Africa.