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Rally behind AU to create financial architecture to support African businesses… President Ruto to private sector

• Dr William Ruto (inset) addressing the participants in the event Photo: Stephanie Birikorang

• Dr William Ruto (inset) addressing the participants in the event Photo: Stephanie Birikorang

The President of Kenya, Dr William Ruto, says the Afri­can Union (AU) is working to ratify all financial institu­tions within the Union as part of efforts to enhance intra-trade and commerce among African coun­tries.

According to him, this would go a long way in developing the needed financial architecture to provide the needed support to African businesses, especially following the implementation of the African Continental Free Trade Area (AfCFTA) agreement.

Speaking in Accra yesterday during a meeting with private sector stakeholders, he explained that the move would expedite the realisation of the AfCFTA.

The meeting, which formed part of President Ruto’s three-day official working visit to Ghana, was convened by the Secretary General of the AfCFTA Secretariat, Wam­kele Mene.

Currently, he stated that Africa spends about $5 billion annu­ally to deal with exchange rate issues, a situation he described as inimical to businesses engaged in intra-trade on the continent.

“I will be working with President Nana Akufo-Addo to ensure that all financial insti­tutions under the AU are ratified, so that we can build the necessary financial ecosystem to support trade, investment and business in our continent,” he said.

The establishment of the Pan-African Payment and Settle­ment System (PAPSS) by the Afri­can Export-Import Bank (Afrex­imbank), he noted, would address all exchange rate challenges.

“The introduction of the cross-border instant payment system for easing the pressures on current accounts and demands on foreign exchange liquidity is to en­sure we don’t lose in trade because of different currencies,” President Ruto added.

He commended Ghana for the support of the AfCFTA secretar­iat to ensure the agreement was implemented in a timely manner.

The AfCFTA, he said, was a significant instrument which could end the continent’s poverty situation, and called for enhanced synergy among African govern­ments to create institutions geared towards the achievement of its objectives.

On his part, Mr Mene not­ed that the AfCFTA presents a unique opportunity to tackle the colonial economic model to facil­itate movement of goods and ser­vices across the continent, create jobs and formalise the smallholder farming.

Despite the implementation challenges, he said, the lessons of other regional trade agreements have been incorporated to make the AfCFTA workable.

Key amongst the lessons was the development of the AfCFTA with legally binding obligations to all countries and governments to ensure objectives were achieved.

Presently, the secretariat, Mr Mene noted, was working to­wards the rollout of the protocol on digital trade and the protocol on women and youth in trade to create opportunities for young Africans and women and ensure inclusive economy and trade.

He reiterated the secretariat’s commitment to working together with the AU, governments and other stakeholders to ensure the AfCFTA becomes a success.

 BY CLAUDE NYARKO ADAMS

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