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Africa Seeks a Single Currency

Discussion in 'International Forum' started by PascalFlx, Mar 9, 2009.

  1. P

    PascalFlx Member

    Mar 9, 2009
    Joined: Feb 11, 2009
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    Globalization Marches on as Politicians Seek to Recreate Euro in Africa
    In a recent meeting of the African Union in Nairobi, Kenya, African
    economists put their heads together in an attempt to create a single African
    currency, similar to that of the Euro in Europe. This group will continue to
    work on the proposal over the next few months, and will be making
    recommendations to the various heads of state during a summit this July.

    The Abuja treaty, signed in 1991, created the African Economic Community as
    a part of the African Union. The African union consists of 53 member states,
    and was established on July 9, 2002. The treaty hoped to create the Afro by
    2028, with a central African bank issuing the continent-wide currency. The
    African Union is currently working on establishing the central bank in
    Abuja, Nigeria.

    Establishing a common currency would have the effect of uniting the
    continent of Africa, both economically and politically. The Afro would
    facilitate trade, lower the cost of conducting business on the continent,
    and reduce the confusion caused when multiple currencies are used.

    Wycliffe Oparanya, the Minister of State for Planning, National Development
    and Vision 2030, said that establishing a single currency for Africa would
    require difficult political decisions to be made. A central African
    Government would be created that would regulate the entire continent's
    banking industry. The central bank of Africa would set the interest and
    currency exchange rates for the entire continent.

    Africa has unique challenges when it comes to integrating the continent with
    a single currency. The European Union was able to integrate under the Euro,
    but it has significantly different economic conditions than Africa does. The
    European per capita GDP is $25,289, while Africa's per capita GDP was
    reported to be $2,975 in 2007. About 36% of Africa's population survives on
    under $1 a day. There are only 100,000 millionaires on the continent,
    compared to 2.6 million European millionaires, even though Africa's
    population is larger than Europe's. Zimbabwe's economy is currently affected
    by hyperinflation. Somalia is currently a collapsed state known for
    continued fighting and piracy.

    The creation of a single African currency will probably be a challenging
    undertaking, but further discussions will bring the concept closer to
    reality during the government summit in July. If all the bugs can be worked
    out, a single currency might help stabilize the continent and increase
    prosperity in a nation that truly needs it. The development of this currency
    should interesting to watch.


    "African Union." Wikipedia. African Union - Wikipedia, the free encyclopedia

    "Economy of Africa." Wikipedia.
    Economy of Africa - Wikipedia, the free encyclopedia

    "Economy of Europe." Wikipedia.
    Economy of Europe - Wikipedia, the free encyclopedia

    Kimani, O'Brien. "Congress Pushes for Single African Currency." Kenya
    Broadcasting Corporation, March 2, 2009.
    Kenya Broadcasting Corporation:

    Niyiragira, Yves. "Push for Single African Currency Begins." AU Monitor,
    March 2, 2009. AUMONITOR | Push for Single Africa Currency Begins

    "Somalia." Wikipedia. Somalia - Wikipedia, the free encyclopedia
  2. Nkamangi

    Nkamangi JF-Expert Member

    Mar 9, 2009
    Joined: Mar 17, 2008
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    Single currency ya nini wakati tunapigana left, right and centre, shida kila kukicha? Shouldn't we be thinking of equitable access to clean water, health care and education. Mtoto hata hajatambaa tunataka aruke kamba, uuwii!
  3. mwakatojofu

    mwakatojofu JF-Expert Member

    Mar 10, 2009
    Joined: Dec 17, 2008
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    mi naona hela moja itakuwa vizuri zaidi. siku zote tufikirie kuwa pamoja zaid. hela moja itakuwa 1 step forward.
    tukiwa wamoja zaid migogoro ya ndani ya nchi mojamoja tutakuwa tunaichukulia kuwa ni hatari kwetu sote - na hivyo tutakuwa tunatoa michango mikubwa kuimaliza