Ramaphosa proposes single African currency: AU Summit

[Amused]

KIGALI – South African President Cyril Ramaphosa on Tuesday strongly punted the idea of creating a single homogeneous currency for African countries in a bid to attract infrastructure investment and enable ease of intra-African trade.

Speaking as a panelist on financing intra-Africa trade at the African Continental Free Trade Area business forum in Kigali, Rwanda, Ramaphosa said that it was time that Africa stops relying on foreign currency for its development and trade, adding that this was born of colonial mentality.

“These are the reasons we need partners who must work with us and assist us ensure we de-risk projects in order to attract finance for infrastructure projects. I am particularly interested in the notion of us having a tradeable currency that allows us to trade effectively across territorial borders,” Ramaphosa said.

“We must rid ourselves of this colonial mentality that demands we rely on other people’s currency. Perhaps the day, the hour and the moment could have arrived for us to create a single African currency. Our focus should not be on our individual countries but the continent as a whole to unlock great opportunities and capabilities.”

At least 53 African Heads of States have gathered in Kigali for the 10th Extraordinary Summit of the AU to consider the legal instruments of the African Continental Free Trade Area (AfCTA) and also launch the agreement officially to establish the treaty.

AfCTA is aimed at deepening African economic integration, promoting agricultural development, food security, industrialisation and structural economic transformation through single-air continental transport market with free movement of persons, capital, goods and services.

AU chairperson and Rwanda President, Paul Kagame gave a strong indication yet that member states will sign the treaty to create the continental free trade area even if the continent’s most-populated country, Nigeria, withdraws from the meeting.

Ramaphosa said that the AfCFTA signals a new beginning for Africa and an opportunity to unleash African people’s entrepreneurial nature, adding that the treaty would create a level playing field for African countries to participate in meaningful trade.

He also touched on the nagging issue of visa barriers for travellers between South Africa and Rwanda, saying that African leaders were creating pathways for their countries which had been impeded by artificial borders to flourish.

“Earlier today, I met with His Excellency President Kagame. We have agreed that we will put the relationship between our two countries on a much better footing. Amongst the issues we discussed, was that we must resolve the challenge of issuing of visa to people of Rwanda wanting to visit South Africa,” Ramaphosa said.

“Our Ministers of International Relations and Cooperation have been tasked to work on this immediately and we thus consider this matter of visas as solved.”

• African News Agency

[Blacks4Trump]

Ramaphosa atamalizwa kama Sadam Na Gadaffi

[Dakan]

I am really eager for this to finally happen. It’s about time The Motherland took it’s rightful place at the helm of World Economics.

[spear]

I don’t support a single African currency now. First we need to do the basics then think of a single currency.

1. Integrate the economies of AU nation.
2. Pass the same financial sector laws, regulations and independent bodies to enforce them in all member states.
3. Integrate the entire infrastructure in Africa to free up movement of goods, services, people and free flow of wealth.

Once this 3 are done then we can start with the single currency. Before that then we risk good nations economies been dragged down by other nations poor policies. Single currency needs tight enforceable regulations away from individual nations.

[denis_young]

I don’t think this serves us well. Looking at the EU you can see that being a member of a Union ensures that policy is also homogeneous to support the currency. Therefore, seeing the current state of several african nations it is likely that most of this policies especially this immigration issue will hit too close to home. Imagine having Nigerians, Sudanese or Congolese immigrants in Kenya. Kutakuwa na war zones halafu uongeze alshabab hapo.

[10000_OTHERS]

Zimbabwe wamesemaje Kwanza before nisome

[GoodVibes]

Single currency for Africa. Bitcoin

[Common_Sense]

Careful before you get eliminated like the greatest of African President of all time Gaddafi.

[system]

A currency based on gold reserves? That would be a good currency. Hizi za Rothschild printed from thin air ndio zimeharibu economy ya dunia

[StanBenj]

Biggest hurdles will be forming a single central bank with monetary policies that fits all … With our African leaders , that will take years but still a good idea either way .

As long as Kenya remains at the forefront and leader in making those policies and negotiations … can’t trust these other African countries , if another Zimbabwe pops up , we need to have the advantage to protect ourselves .

[Ned_Stark]

Why not form one reserves ya gold and dollars for purposes of major projects and bailouts. We should start selling our raw materials in African currency kama euro mambo ya dollar hatutaki .

[obienga]

@spear

I don’t support a single African currency now. First we need to do the basics then think of a single currency.

1. Integrate the economies of AU nation.
2. Pass the same financial sector laws, regulations and independent bodies to enforce them in all member states.
3. Integrate the entire infrastructure in Africa to free up movement of goods, services, people and free flow of wealth.

Once this 3 are done then we can start with the single currency. Before that then we risk good nations economies been dragged down by other nations poor policies. Single currency needs tight enforceable regulations away from individual nations.

@StanBenj

Biggest hurdles will be forming a single central bank with monetary policies that fits all … With our African leaders , that will take years but still a good idea either way .

As long as Kenya remains at the forefront and leader in making those policies and negotiations … can’t trust these other African countries , if another Zimbabwe pops up , we need to have the advantage to protect ourselves .

The African Central Bank is due to be operational by 2020. It’s been in the works since the 90s.

Meanwhile elsewhere in Africa…
[INDENT]
The Manufacturers Association of Nigeria (MAN) has supported the country’s refusal to sign the African Continental Free Trade Area (AfCFTA). Some 44 countries signed the agreement in Kigali, Rwanda on Wednesday, creating the world’s largest free market.[/INDENT]
[INDENT]However, 3,000 Nigeria manufactures praised their country for backing out, saying the deal would lead to gross unemployment at home as most local companies would die "a quicker death’’. https://www.businessdailyafrica.com/news/world/Nigeria-manufacturers-reject-Africa-trade-deal-/4259366-4352916-q48keu/index.html [/INDENT]

[1776]

@Blacks4Trump

Ramaphosa atamalizwa kama Sadam Na Gadaffi

Africans need to rally behind that idea. I hope we’re not too myopic. (well I know we are but hope’s spring is eternal).

[Simiyu22]

Why not just use the US dollar. Same logic. But having a single currency serves no purpose. Different economies at different stages of development. A struggling economy will be killed if a single currency is adapted and it cannot devalue the currency.

[obienga]

@Simiyu22

Why not just use the US dollar. Same logic. But having a single currency serves no purpose. Different economies at different stages of development. A struggling economy will be killed if a single currency is adapted and it cannot devalue the currency.

That’s setting up to be a victim of dollar hegemony https://www.lewrockwell.com/2006/02/ron-paul/why-the-us-hates-iraq-iran-and-venezuela

[Simiyu22]

@obienga

That’s setting up to be a victim of dollar hegemony https://www.lewrockwell.com/2006/02/ron-paul/why-the-us-hates-iraq-iran-and-venezuela

Yes. That’s why I said it’s the same logic. You loose some control in controlling fiscal policy by adopting a single currency.

[obienga]

@Simiyu22

Yes. That’s why I said it’s the same logic. You loose some control in controlling fiscal policy by adopting a single currency.

True. Perhaps a two track system would make sense, a single African currency convertible to local currencies. Africa is the world’s richest continent in terms of resources, there has to be a way to prevent the issuers of dollars and euros from calling the shots, or at least reduce the effects of such shots.

[Simiyu22]

@obienga

True. Perhaps a two track system would make sense, a single African currency convertible to local currencies. Africa is the world’s richest continent in terms of resources, there has to be a way to prevent the issuers of dollars and euros from calling the shots, or at least reduce the effects of such shots.

More important is to fix the internal systems of each country before/or together with fiscal policy. You can have a single currency and are being paid for the resources, but you are being ripped off how much is being paid for these resources, as is common in the African countries.

[obienga]

@Simiyu22

More important is to fix the internal systems of each country before/or together with fiscal policy. You can have a single currency and are being paid for the resources, but you are being ripped off how much is being paid for these resources, as is common in the African countries.

We have a long way to go as Africans, but we will get there one day. The important thing is the first steps have been taken in the right direction.

[Batman_s_Sidekick]

That’s a pipe dream.