3 months ago
32 ARTICLE AD
The African Union (AU) has adopted the proposal for a Continental Mobile Money Interoperability as a measure of pushing forward economic integration.
President Nana Addo Dankwa Akufo-Addo tabled two reports for consideration, namely, the establishment of the African Union Financial Institutions (AUFIs) and Scaling up Interoperability for Economic Integration: Using Mobile Money to buy and sell across Africa, during the just ended AU Mid-Year Coordination Meeting held in Accra.
After careful deliberations, the AU endorsed both reports paving the way for the adoption of the African mobile money interoperability as a means of pushing further integration.
The adoption of the two reports is not only seen as a significant step towards economic integration, but a timely use of technology to deal with the ever elusive continental agenda for a common currency.
A communique issued after the four-day meeting in Accra said the Continental Mobile Money Interoperability aimed at enabling seamless transactions and economic integration across the continent.
It said the interoperability platform would create a seamless currency exchange platform for Africans to buy and sell from each other, using their own local currencies electronically without reliance on any third party foreign currency.
The adoption of this initiative is expected to boost intra-African trade, promote economic integration, and enhance the livelihoods of Africans especially with the implementation of the African Continental Free Trade Area (AfCFTA), the communique said.
The total value of mobile money transactions was recently estimated to be over $1.26 trillion, according to GSMA, that is around 40 per cent of Africa’s GDP.
In regions like West Africa, financial inclusion has significantly improved due to mobile money, rising to 71 per cent and growing. East Africa boasts a 73 per cent mobile money penetration rate, while Southern Africa stands at 45 per cent and growing.
With over 70 per cent of global mobile money transactions occurring in Africa, this move has the potential to unlock tremendous economic opportunities for the continent.
The communique explained that President Akufo-Addo emphasised the importance of mobile money interoperability, stating that while creating business opportunities and helping to tackle unemployment among the youth, a continent wide interoperability would also make it easier for SMEs to conduct business and expand their reach.
To this end, the AU 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.
It said “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.”
