A new payment system for intra-African trade is in the works.
The African Union (AU) says its Specialised Committee on Finance, Monetary Affairs, Economic Planning and Integration will discuss the launch of a payment system for the African Continental Free Trade Area (AfCFTA) from December 1st to the 3rd.
The AU explained that the meeting will hold before the planned deadline on the ratification of the agreement on December 5.
The AfCFTA is one of the biggest free-trade agreements in the world right now, with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion
The Federal Government announced that it has ratified Nigeria’s membership of the AfCFTA ahead of the December 5, 2020 deadline. The agreement goes into effect from the 1st of January 2021.
Secretary, National Action Committee on AfCFTA, Francis Anatogu, said that the agreement would reduce the erosion of Nigeria’s currency.
The naira has suffered nearly 90% devaluation since 2016, through exports of Nigerian-made goods and services, and its exposure to other currencies.
AU’s Continental Payment System, when completed, would help to ease payment integration in AfCFTA countries. The theme of the meeting will be “Securing Africa’s Taxing Rights, Stemming Illicit Financial Flows and developing payment system for AfCFTA”.
The AU disclosed that it would be a major step towards the Agenda 2063 for Africa. The continental body also added that the meeting will discuss implementations of “Aspiration1”, which aims for continental inclusive growth and development.
They will also discuss how to prevent illegal capital flight and tax challenges surrounding the agreement due to the rising African Digital Economy.
