The African Union (AU) has approved a proposal from Ghanaian President Nana Akufo-Addo to create a continent-wide financial institution and accelerate mobile money interoperability across Africa.
The decision was made at the AU’s Mid-Year Coordination meeting in Accra. President Akufo-Addo, who serves as the AU Champion for Financial Institutions, highlighted the importance of improving financial inclusion for Africa’s most vulnerable populations.
The proposed AU Financial Institution aims to enhance intra-African trade, promote economic integration, and improve living standards across the continent by facilitating cross-border transactions and investments. This initiative is expected to drive significant financial growth and development.
Additionally, the AU’s commitment to advancing mobile money interoperability promises to transform business practices across Africa. The initiative is poised to unlock substantial economic opportunities, with the continent already accounting for over 70% of global mobile money transactions. Akufo-Addo emphasized that interoperability will generate employment, particularly for youth, and invigorate economic activity.
To achieve mobile money interoperability by 2027, the AU urges member states to fully implement the Pan-African Payment and Settlement System (PAPSS) and establish a unified regulatory framework for mobile money operations.
This landmark decision advances Africa’s goal of a unified market with seamless financial transactions and increased economic prosperity.
