5th African Union Extraordinary Session of the Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration
30 November 2024
Abuja, Nigeria
Opening Statement at the Ministerial Segment
By
Dr. Hanan Morsy
Deputy Executive Secretary – Programme and Chief Economist of ECA
Excellencies,
Distinguished delegates,
Ladies and Gentleman,
Good morning!
It’s a privilege to join you at this extraordinary session of the Specialized Technical Committee. Let me begin by thanking the African Union Commission for convening this pivotal gathering and the government and people of Nigeria for their warm hospitality.
Today, we come together at a defining moment for Africa - a moment filled with challenges, but also tremendous opportunity. The choices we make here, the steps we take together, can unlock the potential of our beloved continent, bringing us closer to a future of shared prosperity, peace, and unity.
Progress has often been impeded by systemic challenges - fragmented markets, high transaction costs, and the inefficiencies of relying on external financial systems. A unified monetary framework is critical to overcoming these obstacles.
At the heart of our shared vision lies a monumental goal: a monetary union for Africa. This is about building something bigger than ourselves. It’s about creating a future where Africa’s nations and peoples move closer together - economically, politically, socially. It’s no doubt ambitious, but ambition is what define us.
We know this idea isn’t new. The journey toward integration began long ago. But today, we are closer than ever to realizing the promise of the African Monetary Institute and the African Financing Stability Mechanism. Together, these initiatives represent a leap forward - a chance to break down the barriers that have for too long held Africa back and to build the kind of financial foundation we need.
Allow me to emphasize three transformative outcomes we aim to achieve through monetary integration and financial stability:
First, reduce costs and inefficiencies in trade: Today, Africa’s intra-continental trade remains hindered by high transaction costs, with an estimated $5 billion annually lost to inefficient payment systems that depend on foreign intermediaries. A single African currency, supported by a robust monetary policy framework, will cut these costs, accelerate trade, and allow African businesses to compete and thrive.
Second, enhance exchange rate stability: Unpredictable exchange rate fluctuations have long undermined Africa’s trade and investment potential. A stable, unified monetary system will not only create a more predictable economic environment but also harmonize fiscal and monetary policies, leveling the playing field for businesses and investors across the continent.
Third, attract greater investments: Africa’s ability to mobilize domestic and international investment hinges on financial stability and predictability. A common currency and mechanisms like the AFSM will position Africa as an attractive destination for investment, particularly in sectors that can drive sustainable growth, such as infrastructure, energy, and manufacturing.
Of course, none of this will be easy. The road will be long, and there will be challenges. Our nations are diverse in terms economies, policies, and conditions - which requires a phased, pragmatic approach to integration. But progress has never come without effort, and success has never come without unity of purpose.
As we move forward, let’s remember what all this is about, it is to empower our economies, foster resilience, and ensure that every African benefits from the continent’s growth. More importantly it is about the lives we improve - the young entrepreneur who gets her first loan, the farmer who can sell his goods across borders, the family that no longer has to choose between debt payments and a hospital bill. That’s why we’re here.
The African Monetary Institute and the African Financing Stability Mechanism are not just institutional frameworks; they are enablers of transformation. Their success depends on our collective determination to implement policies, mobilize resources, and strengthen governance structures.
Together, we can achieve what once seemed impossible. Let’s remember Nelson Mandela’s words “it seems impossible until it is done”. Together, we can build an Africa that is stronger, more prosperous, and more united than ever before.
Thank you.