The Sixth Mid-Year Coordination Meeting of the African Union (AU), held on July 21, 2024, in Accra, Ghana, represented a major advancement in the continent’s economic integration initiatives.
The prominent gathering, which included Heads of State and Government from various African nations, featured the endorsement of a crucial proposal by Ghana’s President, H.E. Nana Addo Dankwa Akufo-Addo, aimed at enhancing mobile money interoperability across the continent.
In his role as the AU Champion for AU Financial Institutions, President Akufo-Addo highlighted the essential contribution of mobile money to economic integration and trade facilitation within Africa. His proposal, “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa,” was enthusiastically endorsed by the AU Assembly.
The approval of this initiative marks a significant achievement in the AU’s larger plan to boost intra-African trade and economic collaboration. By facilitating seamless mobile money transactions across various countries and financial systems, the AU seeks to reduce transaction costs, broaden financial inclusion, and streamline trade processes among African nations.
During the meeting, chaired by H.E. Mohamed Cheikh El Ghazouani, President of the Islamic Republic of Mauritania and AU Chairperson, the importance of aligning national and regional policies to enhance socio-economic development across Africa was emphasized. The endorsement of the mobile money interoperability plan supports the AU’s goals of improving economic stability and strengthening connections among member states.
In his speech, President Akufo-Addo emphasized how mobile money interoperability could revolutionize operations for small and medium-sized enterprises (SMEs) and informal sector vendors, who are crucial to many African economies.
“By leveraging mobile technology, we can break down barriers to trade, boost economic activities, and empower millions of Africans to participate in the continental and global economy,” he stated.
The meeting’s declaration also called on member states to allocate sufficient financial resources to ensure the successful implementation of the integration agenda.
The AU Commission, working with regional economic communities (RECs) and the African Development Bank (AfDB), has been assigned the task of producing a biennial Integration Report starting in 2025 to monitor progress and highlight areas needing improvement.
As Africa navigates the complexities of globalization, the adoption of mobile money interoperability signifies a major step towards using technology to drive sustainable economic growth. The AU’s decision is anticipated to spur further advancements in financial services and strengthen the continent’s integration into the global economy.