President John Mahama is advocating for the swift establishment of key financial institutions to drive Africa’s economic integration and reduce reliance on foreign aid.

Delivering his keynote address as Champion of African Union Financial Institutions at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, President Mahama called for accelerated efforts to establish an African Central Bank, an African Investment Bank, an African Monetary Fund, and a Pan-African Stock Exchange.

He emphasized that the African Central Bank would play a crucial role in deepening economic cooperation by creating a common monetary policy and a single African currency.

“By mobilizing resources, facilitating trade, and financing infrastructure projects, these can reduce dependence on external aid and create a self-sustaining economic ecosystem for Africa. The African Central Bank is aimed at establishing a single African currency, which will help to reduce exchange rate risks and enhance investment flows across the continent.”

President Mahama further revealed progress in establishing the African Monetary Institute (AMI), a precursor to the African Central Bank.

“I am pleased to inform you that the ministers of finance and the central bank governors have endorsed the draft statute of the Africa Monetary Institute (AMI) through the specialized technical committee on finance, monetary affairs, economic planning, and integration. The AMI will serve as a precursor to the African Central Bank and will carry out essential preparatory work, including technical and legal assessments, as well as ensuring the implementation of macro-economic convergence criteria.”

The Role of Key Financial Institutions

The African Investment Bank (AIB) is expected to foster economic growth and accelerate integration by mobilizing resources from both African and global capital markets to finance investment projects across the continent.

The African Monetary Fund (AMF) will work to eliminate trade restrictions, enhance monetary integration, and provide financial assistance to AU member states.

“The Fund will prioritize regional macro-economic objectives in its lending policies. It will also be providing financial assistance to AU member states as part of its objectives.”

President Mahama also highlighted progress toward establishing a Pan-African Stock Exchange, which aims to integrate capital markets and enhance investment flows within Africa.

“The Pan-African Stock Exchange is envisaged to integrate capital markets, making it easier for businesses to raise capital and thereby enhancing liquidity, promoting intra-African investments, and providing alternative financing mechanisms for governments and the private sector.

“Progress is being made towards the establishment of this exchange, with the Commission and the African Security Exchanges Association working on the Exchange’s linkages project. This initiative also aims to enhance liquidity and facilitate capital mobilization across African nations. We encourage more African Stock Exchanges to join this important project.”

President Mahama’s call for urgent action underscores the need for Africa to build its own financial infrastructure, ensuring long-term economic sustainability and reduced dependency on external aid.