In a significant address at the 13th Zik’s Annual Lecture Series at Nnamdi Azikiwe University in Awka, Nigeria, Dr Mohamed Ibn Chambas, the African Union (AU) High Representative for Silencing the Guns and the Chairman of the AU High-Level Panel on Sudan, passionately advocated for African countries to intensify their efforts towards a common currency. His words carry great weight and potential for the economic future of the continent.

Uniting Africa through a Common Currency for Economic Empowerment

Benefits of a Unified African Currency

A unified African currency, as emphasized by Dr Chambas, would bring about a multitude of advantages. Firstly, it would significantly reduce transaction costs across borders, making intra-African trade more accessible and profitable. This means that businesses across the continent would face fewer barriers and be able to engage in more seamless trade, leading to increased economic activity. For instance, imagine a small-scale trader in one African country being able to sell their goods to a buyer in another country with minimal currency conversion fees and administrative hassles. Such ease of trade would stimulate economic growth and create more business opportunities.Secondly, a common currency could promote stronger economic integration among the 54 African countries. By streamlining trade and removing currency-related uncertainties, it would encourage countries to collaborate more closely on economic fronts. This could lead to the development of regional supply chains and the sharing of resources, further enhancing the economic prospects of the continent. An example of this could be seen in how countries in Europe have benefited from the Euro, with increased trade and cooperation among member states.

Impact on Monetary Policy and Global Negotiating Power

A single currency would give the African Central Bank greater control over monetary policy. It would allow the bank to focus specifically on the unique economic needs of Africa rather than being influenced by external demands. This targeted approach could lead to more effective monetary policies that are tailored to the specific challenges and opportunities faced by African economies.Moreover, by managing their currency collectively, African countries would gain a stronger negotiating position in global financial markets. They would be able to attract foreign investments on more favorable terms that support Africa's development rather than perpetuating dependency. This could lead to increased capital inflows and the development of critical infrastructure and industries on the continent.

Linking with Zik's Vision and African Integration

Dr Chambas highlighted that Zik's vision of economic unity through a single currency is a blueprint for a self-reliant Africa. Zik believed that economic, security, and political integration are the foundations for true independence. By adopting a common currency, Africa is taking a significant step towards realizing this vision.The establishment of African continental financial institutions, such as the African Central Bank, the African Monetary Fund, and the African Investment Bank, as part of the Agenda 2063, is a crucial part of this process. These institutions will play a vital role in supporting the development and implementation of a common currency.For example, the ECO, the West African common currency being spearheaded by ECOWAS, is an important first step. Member states need to demonstrate commitment by meeting the conditions for its introduction and not continuously postpone it. Once the ECO is in place, it will serve as a model for the wider adoption of a common currency across Africa.The African Continental Free Trade Area would also be boosted by a common currency. It would create a more integrated economic space where goods and services can flow freely, further enhancing trade and economic cooperation among African countries.In conclusion, Dr Chambas' call for a common currency is not just a theoretical idea but a practical step towards building a stable, prosperous Africa. By following Zik's vision and working together, African countries have the potential to overcome many of the challenges they face and achieve true economic independence.