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African Union renews talks on common currency, African monetary fund
June 12, 2015, 5:04 am

Representatives from 25 African nations signed an initial agreement on Wednesday to create a free-trade zone linking three economic blocs that would unite 57 per cent of the continent's population [GCIS]

Representatives from 25 African nations signed an initial agreement on Wednesday to create a free-trade zone linking three economic blocs that would unite 57 per cent of the continent’s population [GCIS]

The African Union is pushing for faster regional integration to speed up the implementation of the pan-continental currency, officials have said on the sidelines of the 25th AU Summit taking place in Johannesburg.

Africa aims to have a common currency by 2025 and an African Monetary Fund, the economic affairs commissioner at the African Union (AU) said on Thursday.

Governments hope this will attract higher levels of inward investment, connect Africa through world class infrastructure, with a concerted push to finance and implement major projects.

Experts say there would have to be an intermediate step towards having an African central bank which is going to issue the common currency.

Anthony Mothae Maruping, AU Commissioner for Economic Affairs, said on Thursday, that leaders of Kenya, Uganda, Tanzania, Rwanda and Burundi have already signed a protocol in the Ugandan capital of Kampala for the adoption of a common currency in 10 years.

African central bank governors have also met and deliberated on the establishment of a African monetary fund, but this will be the end result of the “Agenda 2063”, Maruping said.

The continent has an estimated $50-billion annual infrastructure funding gap.

An African monetary union is envisaged in the Abuja Treaty of 1991, but concerns abound that some member countries will lose out from a single currency, undercut by the disparate economic strengths of the various economic blocs.

Representatives from 25 African nations signed an initial agreement on Wednesday to create a free-trade zone linking three economic blocs that would unite 57 per cent of the continent’s population.

The Tripartite Free Trade Agreement (TFTA) would bring together more than 60 per cent of the continent’s gross domestic product, valued at $1.2 trillion, Egyptian President Abdel Fattah al-Sisi said.

These measures are aimed at boosting the continent’s competitiveness in global trade and lift millions of people in the 54-nation AU out of poverty.

 

TBP and Agencies

2 Responses to African Union renews talks on common currency, African monetary fund

  1. utkarsh kumar Reply

    July 18, 2016 at 7:48 pm

    This step is going to be histoical moment for africa .free trade zone and common currency will surely boost the economy and infrastructure of africa thus will bring better employment opportunities,quality education and can also prove to be bridging gap between the african countries ,as they are divied by the felling tribes,race,economic& political inequality.This step will surely will be a milestone in creating panafrican environment.

  2. Garland Wright Reply

    September 24, 2017 at 8:41 pm

    The Birth of the World Bank and International Monetary Fund.
    In 1947 the US played host to an international conference at Breton Woods to put an end to world poverty and starvation, caused by WW2. The idea was to give humanitarian loans to needy nations, by creating a World Bank and International Monetary Fund. But who would be put in charge of these billion dollar mega-loans? Who else but the US Federal Reserve, International Banker families.
    Putting the US Federal Reserve bankers in charge of humanitarian loans is like putting pedophiles in charge of day-care centers. Instead of helping the poor, the bankers turned the World Bank and international monetary fund into international pawn shops and robbed the poor. Just to qualify for a loan, desperate nations were forced to pawn their mines, forests, rail-ways, power companies and water-systems and agree to over 100 loan conditions at loan-shark interest rates. To pay-off their loans, they were forced to ignore laws that protected their environment, to lower wages, cut back on their education and health care. They were also forced to privatize and sell-off their resources to multi-national corporations.
    When poor nations were unable to pay-off their loans, they were given new loans to pay off their old loans, but the so-called bail-out loans weren’t about bailing-out the poor. They were about lining the pockets of loan underwriters like City Group and America’s most notorious crooks and bankers. As desperately poor nations got poorer and poorer, the filthy rich bankers got richer and richer. And God help anyone who got in their way. Davison Butho, senior economist at the international monetary fund resigned to quote “wash my hands of the blood of millions of poor and starving people.” (135)
    When President John F Kennedy tried to take back America, by reviving US government printed money, his head was blown-off in a Dallas motorcade. When his son planned to expose the ugly truth about his father’s assassination, his small plane plunged into the ocean, killing all onboard.

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