| Executive SummaryApproximately thirty-three years ago, in 1991, African leaders, under the auspices of the Organization of African Unity (OAU), later transitioned to the African Union (AU), adopted the Abuja Treaty. This landmark agreement articulated a vision for the creation of the African Economic Community (AEC), with the overarching goal of promoting economic, social, and cultural development across the continent. In response to regional challenges, the AU is pursuing a strategy of rationalizing and consolidating Regional Economic Communities (RECs), alongside accelerating the establishment of key institutions as mandated by the Constitutive Act. These institutions include the African Central Bank, a unified African currency, the African Monetary Fund, and the African Investment Bank.The concept of a unified African currency has long served as a central tenet of Pan-Africanism, symbolizing the potential economic and political power anticipated to arise from continental unification initiatives. Monetary policy is the process by which governments and Reserve/Central Banks control the supply and cost of money to attain a set of objectives oriented towards the growth and stability of the economy. The envisioned structures aimed to improve the welfare of citizens within member states and, ultimately, to coalesce into a unified economic entity. While OAU/AU agencies and RECs have nominally aligned with this vision, progress has been hampered by ideological divergences and complex financial infrastructures, resulting in the non-materialization of the treaty’s core objectives.This policy brief concisely addresses the complex issue of African economic governance, outlining overarching objectives and presenting information on continental policy framework challenges. Designed to be a thought-provoking document, it aims to stimulate dialogue among policymakers, practitioners and researchers by highlighting key problems, potential solutions, and actionable recommendations to influence relevant stakeholders. Specifically, the brief examines the critical role of a single currency and a central bank in advancing African Economic Governance through the African Economic and Governance Forum (AEGF). |
The Centre for Governance and Intra-Africa Trade Studies (CGIATS) is a dedicated academic hub advancing research and policy solutions to foster effective governance and promote intra-African trade. By uniting African scholars and institutions, CGIATS champions sustainable development, economic integration, and the spirit of Pan-African unity.
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