Accra, July 10, GNA – Ghana International Trade and Finance Conference (GITFiC) after their 7th Conference held in Senchi in the Eastern region has encouraged African States to consider integration as a vehicle to foster economic growth and collective sufficiency.
They also recommended to the African Union to enhance support to Regional Monetary Institutes to promote research into strategic direction, progress and lessons gathered by existing Monetary Unions such as WAEMU and CEMAC.
In a communique signed by Mr Selasi Koffi Ackom, Chief Executive Officer of GITFiC and copied to the Ghana News Agency in Accra, they encouraged the Regional Economic Communities to remain committed to a unified monetary integration, and an adoption of common currency for each economic zones, which could then evolve into a unified African currency.
The Communique also admonished African States to align progressively their commitment to a unified monetary integration and single currency, behind Priority Programmes with meeting macroeconomic convergence criteria within the shortest possible time.
“WE encourage African States to create a system of binding enforcement and monitoring of progress towards macroeconomic convergence for an African Single Currency, and the Regional Monetary Unions would need to create a system where national budgets could be submitted and evaluated to instill fiscal discipline among Member States”.
The communique urged the states to ensure harmonization of the dispute resolution mechanisms of the regional economic communities and the AfCFTA, build institutional capacity among stakeholders and businesses in the formal and informal sectors in the implementation of the Pan African Payment and Settlement System (PAPSS) and encourage the development of Cross Border Special Economic Zones (CBSEZ) with emphasis on upscaling production and regional value chains.
“Strengthening education, sensitization, awareness and up-skilling of national key stakeholders to harness the benefits of AfCFTA, while creating a robust policy which operationalises the “Lead-Industry” concept where MSMEs can accelerate growth by learning the innovation, culture and lessons of larger firms. This enhances the local content project, instead of leaving investment in the hands of few foreign corporate entities’.
“The conference served as a fertile ground for intellectual discussions as conference speakers and panelists made various remarkable contributions towards optimization of the AfCFTA implementation. The following were highlighted:
It noted the importance of economic integration under AfCFTA to prosperity and development, and applauded the commitment shown by Member States evidenced by the high number of ratifications.
It also recalled the AU’s adoption of the Treaty establishing the African Economic Community in 1991, wherein the provisions contained in the Treaty called for the establishment of an African Monetary Union for integration of regional monetary zones, and the adoption of an African single currency.
The Communique also recognized that the AEC outlined six key milestones which included the operationalization of a single African currency by 2027 and greed that a single currency for Africa would bring reduction in trade transaction costs and offset exchange rate volatility and financial market imbalances, as well as enhance mobility of factors of production.
It acknowledged that the geo-political structure of Africa with ties to past colonial cousins was a threat to efforts towards adoption of a single African currency and recognized that the key indices for a macro-economic convergence required for an African single currency include; inflation (less than 10% annually), foreign exchange reserves, budget deficits (less than or equal to 3% to GDP), interest rates (long term interest rates).
The Communique bemoaned the weak commitment of African nations to meeting the fundamental conditions required under the monetary convergence criteria for a common African currency and greed that Member States would need to implement strategic plans towards meeting macroeconomic conditions under the convergence criteria.
It noted with concern that many African countries were yet to sign and ratify the AU Protocols on Free Movement of Persons, Right of Residence and Right of Establishment, which are key levers to enhancing trade and utilisation of a single currency.
They also acknowledged that the trading community of Africa comprise over 70% of MSMEs and would need require capital support, technological infusion and sensitization on relevance of a single currency and expressed grave concern about the low sensitization of the business community about the framework, procedures and scope of the PAPSS, the financial payment and settlement system for the AfCFTA.
The Communique applauded African States for implementing the AfCFTA Protocol on Dispute Settlement mechanism as a means of fostering intra-trade and co-operation and requested that the AfCFTA Dispute Settlement mechanism be devoid of political machinations.
It stressed the need for African countries to prioritize trade facilitation processes as part of overall National strategy for AfCFTA.
GNA