Vice President Dr. Mahamudu Bawumia
VICE PRESIDENT Dr. Mahamudu Bawumia says Africa needs to create more uniformed political and economic units for its economies through intra-Africa trade, convergence of currencies on sub-regional basis, easing of national border restrictions, and adoption of open-sky policies.
He said this agenda, if well pursued, will not only boost Africa’s trading position in the global market, but also strengthen its common voice and policy space in global trade negotiations, a key factor which appears to be missing in Africa’s engagement in world trade and economic order.
Addressing the opening session of the Executive Committee Meeting of Commonwealth Parliamentary Association (CPA) – Africa Region in Accra, Dr. Bawumia said even though the GDP of Africa is about $2.7 trillion, making it the fifth largest economy in the world, Africa continues to be the “weakest link” in the world economic order.
“Intra Africa Trade, the convergence of our currencies, at least on the sub-regional basis, and the easing of national border restrictions, open-sky policies are some of the ways we can create more homogenous, political and economic units for our economies,” he stressed.
He added, “It is in this regard that I consider the opportunity offered by the AfCFTA very unique for us to begin to adopt policies to vigorously promote trades amongst ourselves.”
He said the Pan-African Payments and Settlements System (PAPSS) which he launched a few months ago allows for the settlement of trade transactions among African countries in local currencies.
The Vice President said, “So you can pay in Cedis and import something from Kenya or someone can pay in Kenyan’s Shilling and import something from Botswana and there will be settlement. This is a major innovation policy that is helping us as far as trade in Africa is concerned.”
He described it as the most important development in monetary affairs in Africa since 1963 adding, “We worked on it for a few years. We piloted it in the West African Monetary Zone and it is now operational and it is being championed by African Export–Import Bank along with the central banks.”
BY Ernest Kofi Adu