Ghana President John Mahama has urged African leaders to adopt a Pan-African payment system, warning that continued dependence on foreign currencies is undermining the continent’s economic independence.
Speaking at the African Union summit in Addis Ababa, Mahama said African countries cannot fully integrate their economies while depending on the United States dollar for intra-African trade.
He told heads of state and government that settling trade in local currencies would reduce dependence on external financial systems and shield African economies from global financial shocks.
Mahama said a continental payment mechanism would allow countries to conduct cross-border transactions directly in their own currencies, lowering transaction costs and improving efficiency.
He added that the move would strengthen implementation of the African Continental Free Trade Area (AfCFTA), which seeks to create a single market for goods and services across the continent.
According to the Ghanaian leader, economic integration must be supported by financial systems that promote self-reliance and intra-African trade.
The African Union summit brought together leaders from across the continent to deliberate on trade, economic cooperation and regional development.
