On Thursday, Kenya’s President William Ruto, emerges the best champion to advocated for the introduction of a single African currency to Facilitate trade across the African Continent.
In his debut speech at the 22nd common Market for Eastern and South Africa (COMESA). Head of state and Government Summit in Lusaka-Zambia. Ruto highlighted that, regional integration means citizens won’t need to worry about which currency to trade in.
“Our people cannot trade without worrying about which currency to use. This, among other non-tariff barriers, is something we must urgently address so that our people can begin to trade together and integrate,” he states.
Similarly, at the summit, President Lazarus Chakwera of Malawi declared that, the region must no longer waste time in the pursuit of achieving regional integration.
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In September 2021, President Ruto propose for the introduction of a single African currency. Stands as a bold and ambitious stride towards a greater economic integration on the continent. The idea of a common currency has been under discussion for years, and while it presents significant challenges,. It also holds the potential for numerous benefits.
On the positive side, a single African currency could enhance intra-African trade and economic growth. By eliminating exchange rate fluctuation and reducing transaction cost. Thereby, encouraging investments and benefiting African businesses and customers.
The theme of the 22nd COMESA summit strongly aligns with Kenya’s aspiration for radical national transformations.
On the sidelines of a trade forum in the Kenyan capital Nairobi. Wamkele Mene, Secretary- General of the AfCFTA Secretariat, stated that countries within the Economic Community of West African States are already engaging in cross-border trade using local currencies instead of the U.S dollar.
“We now want to expand to other regions blocs including the East African Community. Which is in talks with the African Export-Import Bank,” Mene stated.
He pointed out that the annual cost of currency convertibility, resulting from the use of U.S dollars in trade among African countries, amounts to nearly 5 billion dollars. ” That is expensive and so we have rolled out the pan African payment and settlement system that enables trading in local currencies,” he added
