AGI Urges AfCFTA to Launch Common African Currency

Ghanaian manufacturers are demanding a common African currency to stabilize exchange rates. The Association of Ghana Industries argues that current fluctuations significantly increase the cost of intra-African trade.

This call comes from the third Graphic Business and Stanbic Bank forum in Accra. Participants highlighted that currency instability remains a major barrier to predictable commercial transactions across the continent.

Currency volatility hampers regional trade

Dr Paa Kwesi Eduaful Abaidoo stated that businesses cannot predict the local cost of foreign imports. He explained that exchange rates often shift before goods arrive for final payment settlement.

This unpredictability affects capital accumulation and reduces the overall volume of trade between African nations. Manufacturers face structural constraints that include limited production capacity and weak consumer demand.

AfCFTA framework requires political cohesion

The AfCFTA Secretariat is urged to lead the push for a unified monetary system. Dr Abaidoo noted that five years of operation have provided the necessary institutional framework for growth.

Greater political cohesion is required to translate this framework into full economic integration. A common currency would directly address the volatility associated with cross-border commercial transactions.

Payment systems and regulatory investments

Stanbic Bank officials confirmed that the Pan-African Payment and Settlement System is becoming vital. They view the initial launch of this mechanism as a significant operational achievement.

Banks and governments are now working to remove remaining trade barriers within the region. Financial regulators are also investing in understanding emerging technologies like cryptocurrencies to ensure stability.