The President of the Republic, Nana Addo Dankwa Akufo-Addo, says Member States of the African Union must work collectively to reform the global financial architecture, as well as build and strengthen the Union’s financial institutions.
Delivering his second report to the Assembly, on Sunday, 6th February 2022, in his capacity as AU Champion for Financial Institutions, President Akufo-Addo noted that the AU is currently engaged in the process of establishing four (4) financial institutions (AUFIs), namely the African Central Bank (ACB), the African Investment Bank (AIB), the African Monetary Fund (AMF), and the Pan African Stock Exchange (PASE).
According to the President, “the major challenges towards the establishment of the AUFIs include the slow rate of signature and ratification of the legal instruments, and the limited capacity of Member States to finance the establishment of the AUFIs. Regrettably, none of the AUFIs has reached the minimum number of ratifications required for the enabling legal instruments to enter into force, and, thereby, facilitate their substantive establishment.”
This, he explained, is detrimental to the operationalisation of the African Monetary Institute, which is the first step towards the establishment of the African Central Bank.
President Akufo-Addo, thus, presented a number of recommendations to the AU Assembly for its adoption and endorsement, which, he said, “would be critical towards the establishment of the AUFIs”. They have been captured in the Draft Assembly Decision that will be submitted to Your Excellencies for consideration and adoption.