Ministers of Finance, and the Central Bank Governors of African Union (AU) Member States have endorsed the draft statute for establishing the African Monetary Institute (AMI), as part of effort to boost the continent’s financial and economic integration.
This is through the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration.
President John Dramani Mahama, who is the Champion on African Union (AU) Financial Institutions, made the disclosure in his keynote address at the Heads of State and Government breakfast dialogue held at the AU Commission headquarters in Addis Ababa, Ethiopia.
The event on the theme, “Africa at the forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063”, was held on the sidelines of the AU Summit, under the auspices of the Alliance of African Multilateral Financing Institutions, also called the African Club.
The President said the AMI would serve as a precursor to the African Central Bank and will carry out essential preparatory work, including technical and legal assessments, as well as ensuring the implementation of macroeconomic convergence criteria.
He noted that the AMI awaits further consideration and adoption by the heads of state and government through the AU policy organs.
“Similarly, the African Monetary Fund, the AMF, supports macroeconomic stability, which is crucial for investor confidence,” he said.
He said the African Investment Bank was also a pivoter in funding infrastructure projects such as energy, transport, digital transformation, while the Pan-African Stock Exchange was envisaged to integrate capital markets, making it easier for businesses to raise capital and thereby enhancing liquidity, promoting intra-African investments, and providing alternative financing mechanisms for governments and the private sector.
He said progress was being made towards the establishment of this exchange, with the Commission and the African Security Exchanges Association working on the exchange’s linkages project.
He noted that this initiative also aims to enhance liquidity and facilitate capital mobilization across African nations.
President Mahama said accelerating the implementation of the African Union Financial Institutions, namely the African Central Bank, the African Investment Bank, the African.
Monetary Fund and the Pan-African Stock Exchange was instrumental in fostering investments and financing to achieve their objectives.
He said that mobilising resources, facilitating trade, and financing infrastructure projects, could reduce dependence on external aid and create a self-sustaining economic ecosystem for Africa.
He said the African Central Bank was aimed at establishing a single African currency, which would help to reduce exchange rate risks and enhance investment flows across the continent.
“We encourage more African stock exchanges to join this important project. Undeniably, strong political will and effective policy coordination are going to be crucial for the successful implementation and overall impact of the African Union financial institutions,” he said.
President Mahama said Ghana continues to champion and advocate for member states to embark on due processes at the national levels to expedite the establishment of these institutions, recognising their significance in promoting investments and financing the AU Agenda 2063.
“While we have made significant strides, the journey ahead requires unwavering commitment,” he said.
“I call upon all our governments, our private sector, our civil society organisations, and development partners to renew their commitment to mobilizing resources for our continental blueprint on development.
“Let us leverage our collective strengths, foster strategic partnerships, and champion innovative solutions to bridge the financing and investment gaps in Africa.”
Adding that, “the Africa we envision, a continent that is integrated, prosperous and peaceful, is within our reach”.
Adding that by mobilising their resources, reforming their financial systems, and investing in their people, they could realize the laudable aspirations of creating the Africa they want, their Agenda 2063.
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