The African Union (AU) has officially endorsed President Nana Addo Dankwa Akufo-Addo’s ambitious blueprint for a continent-wide financial institution and the swift advancement of mobile money interoperability across Africa.
The decision was taken during the 2024 AU Mid-Year Coordination meeting held in Accra last week.
At the 2024 AU Mid-Year Coordination meeting in Accra, delegates extended their unanimous support for President Akufo-Addo’s proposals aimed at strengthening the financial landscape of Africa. As the AU Champion for Financial Institutions, President Akufo-Addo presented two comprehensive reports outlining his vision, which aims to foster financial inclusion and bolster economic integration across Africa.
The proposed establishment of an AU financial institution is expected to facilitate cross-border transactions and investments, providing a significant boost to intra-African trade and overall economic growth. President Akufo-Addo expressed optimism about the initiative, stating, « This marks a pivotal step towards transforming Africa’s financial ecosystem and addressing the financial exclusion faced by the continent’s most vulnerable populations. »
The AU’s endorsement signals the start of a collaborative effort to enhance Africa’s financial infrastructure, with the institution projected to become operational within the next five years. Meanwhile, the efforts to promote mobile money inter-opera-bility are anticipated to revolutionize business transactions across the continent. President Akufo-Addo highlighted the significance of these initiatives, remarking, « Africa currently accounts for over 70 percent of global mobile money transactions ; thus, inter-operability stands to unlock tremendous economic opportunities, especially for our youth. »
To achieve full interoperability by 2027, the AU has urged member states to swiftly adopt the Pan-African Payment and Settlement System (PAPSS) and to create a unified regulatory framework for mobile money operations. The PAPSS is designed to facilitate seamless financial transactions across borders, promoting efficiency and greater economic integration among nations.
The next crucial phase will involve operationalizing these initiatives, with AU member states expected to discuss the proposals in detail during a gathering of all 54 heads of state in February next year.
