Africa’s numerous currencies a challenge to AfCFTA implementation - Akufo Addo

President Nana Addo Dankwa Akufo-Addo has said Africa playing host to several currencies impedes the effective implementation of the Africa Continental Free Trade Area (AfCFTA).

Akufo-Addo believes a single currency market will aid in the smooth running of the AfCFTA.

He made this known in a speech read on his behalf by the Minister of Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey, at the second mid-year coordination meeting of the AU Financial Institutions, in Addis Ababa, Ethiopia.

The speech which was read on Thursday, October 22, 2020, Akufo-Addo underscored the negative effect of Africa’s numerous currencies on AfCFTA.

“Africa has more than 40 currencies, which are characterised by frequent volatility, illiquidity and rarely traded status on the global financial market, which makes trading among African countries difficult.

This constitutes one of the biggest barriers to the effective implementation of the AfCFTA and the development of the continent”.

On Africa’s fight against COVID-19, he noted that the implementation of the African Union (AU) Financial Institutions will be crucial in the continent’s coronavirus recovery phase.

According to him, most developed nations amidst the pandemic have had to commit huge funds to boost their economies due to their financial independence but the narrative is different in Africa.

“The COVID-19 pandemic has undoubtedly unleashed adverse consequences on African countries already battling various challenges”.

The International Monetary Fund (IMF), he said, estimated that Emerging Markets and Developing Economies (EMDE) will require US$ 2.5 trillion to effectively fight the pandemic and resuscitate their economies.

While the IMF is providing Africa US$ 1.2 trillion in lending, he explained, there was a funding gap of US$ 1.3 trillion.