The African Union (AU) has endorsed President Nana Addo Dankwa Akufo-Addo’s vision for a continent-wide financial institution and the acceleration of mobile money interoperability across the continent.

The adoption came during the AU Mid-Year Coordination meeting held in Accra last week. This signals a major step towards enhancing financial inclusion and economic integration across Africa.

President Akufo-Addo, who serves as the AU Champion for Financial Institutions, presented two comprehensive reports outlining his vision.

The proposals, focusing on the establishment of an AU financial institution and the scaling up of mobile money interoperability, received overwhelming support and applause from attending delegates.

This vision aims to address financial exclusion among Africa’s most vulnerable populations. 

Financial inclusion

The proposed AU financial institution is designed to facilitate cross-border transactions and investments, which are expected to significantly boost intra-African trade and contribute to the continent’s economic growth.

The AU’s endorsement marks the beginning of a collaborative effort to transform Africa’s financial ecosystem, with the goal of fostering a more integrated and prosperous continent.

This financial institution is anticipated to be operational within the next five years, serving as a unified platform for financial activities across the continent, providing a much-needed boost to Africa's economic infrastructure.

In addition to the financial institution, the AU’s commitment to scaling up mobile money interoperability stands to revolutionise how Africans conduct business.

Currently, Africa accounts for over 70 per cent of global mobile money transactions. The move towards interoperability is expected to unlock immense economic opportunities and create jobs, particularly for the youth.

Adopt PAPSS

To achieve full interoperability by 2027, the AU has called on member states to adopt the Pan-African Payment and Settlement System (PAPSS) and to develop a unified regulatory framework for mobile money operations.

The system is designed to facilitate seamless financial transactions across borders, promoting greater economic integration and efficiency. The next critical phase for the initiatives is their operationalisation by AU member states.

When all 54 heads of state convene in February next year, the proposals will be tabled for further discussion and implementation planning. The success of both initiatives hinges on the collective commitment of all member states.

With the operationalisation of this initiative, the continent is poised to enter a new chapter of growth and development, driven by enhanced financial inclusion and seamless cross-border transactions.