BY MBONO MDLULI
MBABANE – African countries are working to come up with an African currency that will enhance trade within the African continent.
The African currency will come into existence once an African Central Bank (ACB) is put in place. Minister of Finance Neal Rijkenberg said ministers of finance in Africa met in Nigeria during the weekend of November 30 and December 1, 2024 to discuss the formation of the ACB. He said this on the weekly #FinanceInFocus programme on the Ministry of Finance’s Facebook page. Minister Rijkenberg was chairing the meeting.
According to the minister, the ACB could make it possible for the African currency to be formed. The aim here, according to the minister, is to enable African countries to trade among themselves, using an African currency. The minister mentioned that they wanted to work more or less similar to the European style, where they had the European Central Bank (ECB) and their own currency – the Euro.
The minister said they wanted to have done something tangible regarding that massive task, by the time of the African Union (AU) Heads of State meeting in February. Rijkenberg mentioned that if they managed to get that right, it could be massive for Africa because it could aid its trade. He said in the meeting in Nigeria, they were able to do something like agreeing on coming up with a fund that could help in bailing out countries in debt distress.
That would help not to rely that much on international institutions such as the International Monetary Fund (IMF) and the World Bank. The minister said what could be phenomenal was the trade aspect of the whole thing. He said the African countries could be unified by the trade within Africa and many of these States could have an economic breakthrough. He said with the African Free Trade Agreement (AfCFTA) now in place, the trade would be more possible because the trade barriers would end up being removed.
He said the problem with Africa was that in the trade blocs that existed in Africa, such as the Economic Cooperation of West African States (ECOWAS), the countries traded 70 to 80 percent among themselves and traded 20 to 30 percent outside. He said in Africa, countries got it wrong because they traded 18 percent with each other and 82 percent with the rest of the world.
The ACB is set to be part of the AU, an organisation formed in 1963, as the Organisation of African Unity (OAU). The AU, which was adopted as such in 2002 in Durban, South Africa, wants to unify African countries so that they can be able to be stronger together and overcome their problems cooperatively. They also want to be united when dealing with the international community and they wanted to be stronger when protecting African interests.
According to AI Overview, the African Union (AU) has many organs that work together to implement its objectives:
• Assembly of Heads of State and Government: The highest decision-making body, made up of all AU member state heads of state or government. The presidency rotates annually.
• Executive Council: Prepares decisions for the Assembly and is made up of foreign ministers.
• Pan-African Parliament: An advisory and supervisory body made up of 265 representatives elected by AU member state parliaments.
• AU Commission: The executive organ and secretariat of the AU, with headquarters in Addis Ababa, Ethiopia. The Commission prepares and submits an annual report to the Assembly, Executive Council, and Parliament.
• Economic, Social and Cultural Council (ECOSOCC): An advisory body for African civil society with 150 members.
• African Court on Human and People’s Rights: Located in Arusha, Tanzania.
• Peace and Security Council (PSC): A practical decision-making body with extensive powers in the areas of peace and security.
• Permanent Representatives Committee (PRC): Assists the Executive Council.
• Specialized Technical Committees (STCs): Assist the Executive Council in substantive matters.
• Financial Institutions: Consists of the African Central Bank, the African Monetary Fund, and the African Investment Bank.
