Single currency, African initiative to circumvent the dollar

The creation of a single currency could lead to more meaningful coherence among African countries with the aim of ending the dominance of the dollar in intra- and inter-African trade.

The issue of having a single currency to trade among members of the African Union (AU) came up again at the recent Common Market for Eastern and Southern Africa (COMESA) Leaders' Summit in Lusaka. The realization of this project could boost trade between African states, Malian economist Modibo Mao Makalou told the Sputnik news agency.

The expert says the currency challenge is still one of the main barriers to trade, especially between COMESA members, a market representing over 580 million citizens and a combined gross domestic product of over $720 billion. dollars.

“Regional integration can only be fully achieved if citizens no longer have to worry about the currency used when trading. A single currency would promote trade and integration between African countries, so that they can trade more with each other,” Modibo Mao Makalou told the Sputnik journalist.

Before creating a common currency, African states will be able to count on the African Continental Free Trade Area (ZLECAf) to stimulate trade across the entire black continent. It is clear that the ZLECAf brings together 54 African countries out of 55. According to Modibo Mao Makalou, the project to create a currency aims to create a real single continental market.

“The said Zone aims to boost intra-African trade in products through the gradual elimination of customs tariffs, non-tariff barriers and the development of value chains both regionally and at the national level. continental. Within five years of its implementation, it must remove more than 90% of customs duties on goods traded between member states,” according to the African expert.

Better African economic integration is very important at a time when some African countries are now coming up against the limits of the dollar. Kenyan President William Ruto said that his country was having more and more difficulty importing and exporting, because of the monopoly of the American currency.

According to the economist, "the rise in interest rates in the United States to fight against inflation in this country has a negative effect on the trade of African countries which are large importers".