Addis Ababa: Ministers of Finance, and Central Bank Governors from African Union (AU) Member States have endorsed the draft statute for the establishment of the African Monetary Institute (AMI), marking a significant step towards enhancing the continent's financial and economic integration. This development was facilitated through the Specialised Technical Committee on Finance, Monetary Affairs, Economic Planning, and Integration.
According to Ghana News Agency, President John Dramani Mahama, the Champion on AU Financial Institutions, announced this endorsement during his keynote address at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Ethiopia. The event, themed 'Africa at the forefront: Mobilizing African Investment and Financing for Implementing Agenda 2063', was held alongside the AU Summit, under the banner of the Alliance of African Multilateral Financing Institutions, also known as the African Club.
President Mahama highlighted that the AMI is envisioned as a precursor to the African Central Bank, tasked with conducting essential preparatory work such as technical and legal assessments and ensuring the implementation of macroeconomic convergence criteria. He noted that the AMI awaits further consideration and adoption by the heads of state and government via the AU policy organs.
He also emphasized the role of the African Monetary Fund (AMF) in supporting macroeconomic stability, vital for fostering investor confidence. Additionally, he mentioned the African Investment Bank's pivotal role in funding infrastructure projects like energy, transport, and digital transformation. Furthermore, the Pan-African Stock Exchange is anticipated to integrate capital markets, facilitating easier capital raising for businesses, enhancing liquidity, promoting intra-African investments, and providing alternative financing mechanisms for both governments and the private sector.
Progress is being made towards the establishment of the Pan-African Stock Exchange, with the Commission and the African Security Exchanges Association collaborating on the exchange's linkages project. This initiative aims to enhance liquidity and facilitate capital mobilization across African nations.
President Mahama reiterated the importance of accelerating the implementation of the AU Financial Institutions, including the African Central Bank, the African Investment Bank, the African Monetary Fund, and the Pan-African Stock Exchange, to foster investments and financing for achieving their objectives. He stressed that mobilizing resources, facilitating trade, and financing infrastructure projects could reduce dependence on external aid, creating a self-sustaining economic ecosystem for Africa.
He mentioned the goal of the African Central Bank to establish a single African currency, which would help reduce exchange rate risks and enhance investment flows across the continent. He encouraged more African stock exchanges to join this critical project, underscoring the necessity of strong political will and effective policy coordination for the successful implementation and overall impact of the AU financial institutions.
President Mahama assured that Ghana continues to advocate for member states to expedite the establishment of these institutions at the national levels, recognizing their significance in promoting investments and financing the AU Agenda 2063. He called upon governments, the private sector, civil society organizations, and development partners to renew their commitment to resource mobilization for the continental development blueprint.
The President concluded by emphasizing Africa's potential to become a continent that is integrated, prosperous, and peaceful through mobilizing resources, reforming financial systems, and investing in its people, thereby achieving the aspirations of Agenda 2063.