President Nana Addo Dankwa Akufo-Addo’s plans for a continental financial institution and for accelerating mobile money interoperability have received support from the African Union (AU).
The adoption took place last week in Accra during the AU Mid-Year Coordination conference. This is a significant advancement in the integration of the African economy and financial inclusion.

As the AU Champion for Financial Institutions, President Akufo-Addo outlined his vision in two extensive studies that he presented.

Attending delegates enthusiastically praised the plans, which centered on the creation of an AU financial institution and the expansion of mobile money interoperability.

The goal of this vision is to alleviate financial exclusion among the most marginalized groups in Africa.

Inclusion of finances
The planned AU financial institution is intended to ease cross-border investments and transactions, which are anticipated to greatly increase intra-African commerce and support the continent’s economic expansion.

With the support of the AU, a cooperative endeavor to revamp Africa’s financial landscape has commenced, aiming to promote a more affluent and integrated continent.

It is projected that this financial institution will begin operations in the next five years, offering a much-needed boost to Africa’s economic infrastructure by acting as a single platform for financial operations throughout the continent.

Apart from the banking institution, the African Union’s dedication to enhancing mobile money interoperability has the potential to completely transform the way Africans conduct business.

Presently, more than 70% of all mobile money transactions worldwide originate from Africa. It is anticipated that the transition to interoperability will open up enormous economic opportunities and generate employment, especially for young people.

Take up PAPSS
The African Union (AU) has called on member states to build a single regulatory framework for mobile money operations and to adopt the Pan-African Payment and Settlement System (PAPSS) in order to achieve complete interoperability by 2027.

The system is meant to make cross-border financial transactions easy, which encourages increased economic efficiency and integration. The operationalization of the initiatives by AU member states is the next crucial stage.

The ideas will be presented for more discussion and preparation for adoption when the 54 heads of state meet in February of the following year. The cooperation of all member nations is necessary for these programs to succeed.

The continent is ready to embark on a new phase of growth and development, propelled by improved financial inclusion and smooth cross-border transactions, with the operationalization of this project.