President Akufo-Addo’s proposal for the African Union to establish an AU Financial Institution has been adopted by the Union for implementation.
The Union has also adapted the proposal to scale up mobile money interoperability to buy and sell in Africa.
President Akufo-Addo who is the AU Champion on Financial Institutions during the AU Mid-Year Coordination meeting in Accra pushed for more financial inclusion in Africa to help the vulnerable and the deprived.
The adoption of this initiative is expected to boost intra-African trade, promote economic integration, and enhance the livelihoods of Africans.
With over 70% of global mobile money transactions occurring in Africa, this move has the potential to unlock tremendous economic opportunities for the continent.
President Akufo-Addo emphasised the importance of mobile money interoperability, stating that it will enable Africans to use their mobile money wallets to buy and sell across member states, creating business opportunities and helping to tackle unemployment among the youth.
The AU has called upon member states, regional economic communities, and relevant stakeholders to commit to achieving mobile money interoperability by 2027.
This includes bringing all member states on board the Pan-African Payment and Settlement System (PAPSS), allowing cross-border mobile money interoperability, and developing a continental regulatory framework for mobile money operations.
The adoption of mobile money interoperability is a significant step towards achieving the African Union’s goal of creating a single, unified market for Africa.
It is expected to promote economic growth, reduce transaction costs, and enhance the overall economic integration of the continent.