African Union (AU) has approved President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability throughout Africa, a major step towards economic unification.
This effort aims to facilitate smooth transactions and promote economic integration throughout the continent.
In Accra, Ghana, President Akufo-Addo delivered two reports during the African Union Mid-Year Coordination Meeting. “Establishment of the African Union Financial Institutions (AUFIs)” and “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa.”
The African Union (AU) has endorsed the findings, paving the way for mobile money interoperability across the continent.
The program’s implementation is expected to enhance the quality of life for Africans, promote economic integration, and increase intra-African trade.
This decision could unlock numerous economic opportunities for Africa, which currently accounts for over 70% of global mobile money transactions.
President Akufo-Addo emphasized the importance of mobile money interoperability, noting that it will enable Africans to use their wallets to buy and sell goods and services between member states, fostering economic opportunities and aiding in the fight against youth unemployment.
The African Union has called on member states, regional economic communities, and relevant stakeholders to commit to achieving mobile money interoperability by 2027.
As part of this initiative, all member states will be required to join the Pan-African Payment and Settlement System (PAPSS), allow cross-border mobile money interoperability, and establish a regulatory framework to govern mobile money operations across the continent.
With the adoption of mobile money interoperability, the African Union’s goal of creating a single, unified market for Africa is significantly closer to becoming a reality.
This initiative is anticipated to boost the continent’s overall economic integration, stimulate economic growth, and reduce transaction costs.