ADDIS ABABA – During a Presidential Dialogue on the margins of the 37th African Union Summit, African nations were urged to ratify conventions for the establishment of key continental financial institutions aimed at enhancing intra-African trade, financial deepening, and stability. The dialogue, which focused on African Union Financial Institutions, reforms of the global financial architecture, and the launch of the Africa Club, was a platform for discussing measures to strengthen Africa’s economic independence and development.
According to Ethiopian News Agency, who addressed the dialogue, it is imperative for African economies to reconsider the allocation of their sovereign reserves. He advocated for investing at least 30 percent of these reserves in African multilateral institutions like the African Development Bank and the African Export-Import Bank to bolster their balance sheets and, by extension, support African development more effectively. Akufo-Addo also proposed the creation of an annual economic summit where African leaders could deliberate on economic issues pertinent to the continent.
Further emphasizing the need for institutional support, Akufo-Addo called on African nations to ratify conventions that would lead to the establishment of the African Investment Bank, the African Monetary Fund, and the African Central Bank. These institutions are seen as pivotal in promoting intra-African trade, financial deepening, and stability across the continent.
Albert Muchanga, the Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals of the African Union Commission, echoed the call for action. He outlined the importance of establishing the African Union Financial Institutions, which include the African Central Bank, the African Investment Bank, the African Stock Market, the African Credit Agents, the African Monetary Fund, and the African Financial Stability Mechanism. Muchanga stressed that these institutions are essential for Africa’s development and urged member states to sign the necessary legal instruments and mobilize capital for their operation.
Additionally, Muchanga highlighted the need for macroeconomic convergence as a prerequisite for establishing the African Central Bank and a common African currency. He called for swift action and participation from all member states to drive Africa’s development agenda forward, emphasizing the role of these institutions in ensuring the continent’s financial stability and growth.