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The African Union (AU) has officially backed President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability across the continent. This proposal, seen as a vital move towards deeper economic integration, aims to streamline financial transactions and enhance intra-African trade and development.
The AU Heads of State and Government reached this decision following President Akufo-Addo’s presentation of two significant reports at the Union’s Sixth Mid-Year Coordination Meeting of Regional Economic Communities in Accra last weekend. The reports, titled “Establishment of the African Union Financial Institutions (AUFIs)” and “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa,” received unanimous approval from the attendees. The reports are also set to be considered at the 79th Session of the United Nations General Assembly in September 2024.
The meeting’s purpose was to review the progress of continental integration and assess the effectiveness of policy harmonization between the AU and regional economic communities. As the AU’s Champion on African Union Financial Institutions, President Akufo-Addo stressed that mobile money interoperability would not only advance Africa’s integration goals but also enhance financial inclusion for its most disadvantaged groups.
He highlighted the transformative potential of mobile money interoperability for small businesses and informal sector traders, who are crucial to many African economies. This move is expected to revolutionize business practices across Africa, create job opportunities for young people, and stimulate economic activity, given that the continent already handles over 70% of global mobile money transactions.
President Akufo-Addo remarked, “By leveraging mobile money technology, we can break down barriers to trade and boost economic activities to empower millions of Africans in the continental and global economy. Our continent is home to a vibrant market of nearly 1.4 billion people, with the majority being youth—Generation Z, with Generation Alpha following. It is in our collective interest as today’s leaders to offer the youth of our continent the freedom to express their creativity economically and without border constraints and earn from their enterprise.”
He added, “Give the youth of Africa the freedom to aspire, and they shall be inspired to lead in creating the Africa we want, the Africa we desire, and the Africa they deserve. Let us leave Accra knowing we have committed our union, our Regional Communities, and our Member States to allowing our people the opportunity to buy and sell anywhere in Africa, using just their hand-held mobile device. Let us leave this room committing all our relevant institutions to fast-tracking the process.”
President Akufo-Addo also urged his counterparts to show the necessary will and commitment to realize this ambitious agenda. He stated, “By championing interoperability, we are taking a decisive step towards realizing the Africa that our freedom fighters dreamed of, which today is in our hands to bring about—a prosperous, integrated, and globally competitive continent.”
The AU has called on member states, regional economic communities, and other stakeholders to achieve mobile money interoperability by 2027. This includes integrating all member nations into the Pan-African Payment and Settlement System (PAPSS), enabling cross-border mobile money interoperability, and establishing a continental regulatory framework for mobile money activities.
Africa’s mobile money transactions are valued at over $1.26 trillion, representing nearly 40% of the continent’s GDP. Mobile money has significantly increased financial inclusion in West Africa to 71%, in East Africa to 73%, and in Southern Africa to 45%, with further growth anticipated.
The adoption of mobile money interoperability is seen as a crucial step towards the AU’s objective of creating a single, unified market for Africa. It is expected to drive economic growth, reduce transaction costs, and enhance continental economic integration. Mohammed Cheikh El Ghazouani, Chairperson of the African Union and President of Mauritania, underscored the importance of harmonizing national and regional policies to advance socioeconomic development across the continent.
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