AfCFTA Growth Requires A Common Currency, According To The MD Of The Bank Of Africa

Kobby Andah, the MD of the Bank of Africa, has stated that establishing a common currency and digitizing trade will go a long way toward ensuring the success of the African Continental Free Trade Area (AfCFTA).

He said the financial sector has a significant role to play in the smooth and seamless implementation of AfCFTA, speaking at the 5th Ghana International Trade and Finance Conference with the topic “Fostering Trade and Trade-Finance in AfCFTA; The Responsibility of the Financial Sector.”

He believes that a united currency will help deal with differences in exchange rates between member countries, cutting transaction costs for cross-border businesses.

“Digitalization of commerce will improve cash flow, cut the cost of conducting business abroad, help connect all enterprises without time limits, and allow businesses to easily access more clients across the continent,” he said.

As a result, he believes the AfCFTA should include more than just tariff harmonization and customs regulations and processes.

In order to realize the full benefits of the AfCFTA, Andah asked banks to give capital to enable local businesses to grow output. “With adequate investment, local businesses will be able to expand and diversify their production in order to compete across borders, which will be a significant boost to the African economy,” he says.