The African Union (AU) has given its stamp of approval to President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability across the continent.
This important step towards economic integration aims to streamline economic transactions and boost trade and development within Africa.
During the AU’s Sixth Mid-Year Coordination Meeting of Regional Economic Communities in Accra, President Akufo-Addo presented two reports for consideration, namely the “Establishment of the African Union Financial Institutions (AUFIs)” and “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa.” Both reports were unanimously endorsed by the meeting, with plans to present them at the 79th Session of the United Nations General Assembly in September 2024.
President Akufo-Addo, who also serves as the AU’s Champion on African Union Financial Institutions, emphasized the significance of mobile money interoperability in advancing Africa’s integration agenda and enhancing financial inclusion, especially for disadvantaged populations. The potential of mobile money interoperability to transform business practices, create job opportunities for the youth, and stimulate economic activities is substantial, given that Africa already accounts for over 70% of global mobile money transactions.
The AU has set a target for member states, regional economic communities, and other stakeholders to achieve mobile money interoperability by 2027. This includes integrating all nations into the Pan-African Payment and Settlement System (PAPSS), enabling cross-border mobile money interoperability, and establishing a continental regulatory framework for mobile money operations.
With Africa’s mobile money transactions estimated at over $1.26 trillion, representing nearly 40% of the continent’s GDP, the adoption of mobile money interoperability is a crucial step towards the AU’s vision of a unified African market. This move is expected to drive economic growth, reduce transaction costs, and enhance continental economic integration.
Mohammed Cheikh El Ghazouani, Chairperson of the African Union and President of Mauritania, highlighted the importance of aligning national and regional policies to drive socioeconomic development in Africa. The agenda for mobile money interoperability aligns with the AU’s objective of promoting economic stability and fostering stronger ties among member states.
Overall, the endorsement of mobile money interoperability by the AU signals a significant stride towards realizing Africa’s economic potential and creating a more integrated and competitive continent. The commitment of leaders and stakeholders to this ambitious agenda is crucial for driving economic progress and empowering millions of Africans within the continental and global economy.
