One of Africa’s most powerful countries, South Africa, has renewed its support for a single African currency to help improve intra-continental commerce. Minister of International Relations and Cooperation Naledi Pandor stated the country’s stance on the much-anticipated initiative.
“South Africa has consistently reaffirmed her commitment to continuing to support continental integration following the provisions of the Abuja Treaty of 1991, which seeks to assist AU member states in overcoming trade barriers that obstruct the flow of goods, services, and capital,” she said.
Nigeria, the giant of Africa and one of the fastest-growing economies on the continent, has launched its own digital currency, E-Naira, to break the jinks of cryptocurrency and economic barriers.
According to Pando, the development of the African Union Financial Institutions (AUFIs) in conjunction with efforts toward a common currency is crucial.
“Against this backdrop, the establishment of the African Union Financial Institutions (AUFIs), which include the ACB, AIB, and AMI, is seen as critical in facilitating the creation of a single currency and boosting intra-Africa trade,” she said, adding that “these institutions are a key component of Agenda 2063’s flagship projects.”
The minister went on to describe some of South Africa’s contributions and actions toward the creation of the currency. She also stated that her country is ready to help with future initiatives aimed at achieving this goal.
“South Africa supported the inauguration of the operational instruments of the AfCFTA, which included, amongst others, the digital payment system, during the 12th extraordinary session of the AU Assembly in Niamey, Niger in July 2019,” Pandor stated.
“South Africa underlines its readiness to work with all stakeholders and in collaboration with the other AU Member States to ensure that all outstanding technical concerns are addressed as quickly as possible,” she said.
