African Union (AU) reform advocate and Kenyan President Dr. William Samoei Ruto has unveiled plans to ratify all financial institutions under the Union’s umbrella.
He said the decision would create a strong financial architecture to provide African businesses with the support they need to foster intra-regional trade, commerce and investment on the continent.
President Ruto noted that the decision by the AU also ensured accelerated achievement of the goals of the African Continental Free Trade Area (AfCFTA) Agreement.
He was speaking during a meeting with industry and financial sector stakeholders at a reception for AfCFTA Secretary-General Wamkele Mene at the AfCFTA Trade House.
The event was held as part of President Ruto’s three-day official working visit to Ghana.
He said: “I will work with President Nana Akufo-Addo to ensure that all financial institutions under the AU umbrella are ratified and create the necessary financial eco-system to support trade, investment and business on the continent. “We will make it possible to build a system.”
On some of the major challenges facing the continent’s businessmen when it comes to intra-African trade, President Ruto pointed out that the continent spends approximately US$5 billion annually to address exchange rate issues. .
However, AU reform advocates expressed confidence that the establishment of the Pan-African Payments System (PAPSS) by the African Export-Import Bank (Afreximbank) would solve the challenge.
He said the introduction of an instant cross-border payment system to ease pressure on current accounts and demands on foreign exchange liquidity was “to ensure that we do not suffer trade losses due to currency differences”. he pointed out.
He detailed the work done to date on the implementation of the free trade agreement and said the AfCFTA Secretariat is well placed to ensure its success.
President Ruto then highlighted the potential of free trade agreements in addressing Africa’s poverty situation and increasing synergy among African governments to create institutions to make all its goals a reality. I asked.
Mr. Mene, AfCFTA Executive Director, said: “AfCFTA is perhaps the last step for Africa to break out of this colonial economic model in order to ensure intercontinental movement of people, create jobs for many African youth, and bring smallholder farmers into formal agriculture.” It would be an opportunity for ‘trade. “
He therefore called for accelerating efforts to implement the AfCFTA, noting that while there may be challenges, lessons can be drawn from other similar trade agreements to give clarity to the AfCFTA.
“We have learned from the history of the European Union (EU) and observed the lessons of the creation of the single market, which resulted in member states adopting agreements that set Africa apart in many ways,” he said.
He noted, for example, that the AfCFTA is the only known trade agreement that imposes legally binding obligations to create opportunities for young people and women.
“We are taking concrete steps to ensure that the Protocol on Digital Trade and the Protocol on Women and Youth in Trade are fully implemented in practice,” said the AfCFTA Secretary-General.
This, he noted, would lead to an inclusive economy and trade and remove barriers to trade for African youth, including small and medium-sized enterprises (SMEs).
Assuring the Secretariat’s commitment to ensuring Africa’s unique market goals are achieved on time, Mene said, “If we are committed and determined, we will get results.”