The African Union (AU) has approved President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability throughout Africa, which is a major step towards economic unification.
The objective of this effort is to facilitate smooth transactions and promote economic integration throughout the continent.
In Accra, Ghana, President Akufo-Addo delivered two reports during the African Union Mid-Year Coordination Meeting. “Establishment of the African Union Financial Institutions (AUFIs)” and “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa.”
The AU approved the findings, opening the door for mobile money interoperability to be implemented throughout Africa.
It is anticipated that implementation of this program will improve Africans’ quality of life, encourage economic integration, and increase intra-African commerce.
This decision could open up a plethora of economic options for Africa, as the continent accounts for over 70% of worldwide mobile money transactions.
Mobile money interoperability is crucial, according to President Akufo-Addo, who highlighted how it will allow Africans to use their wallets to buy and sell goods and services between member states, fostering economic opportunities and assisting in the fight against youth unemployment.
The African Union has issued a call to action for member states, regional economic communities, and pertinent stakeholders to pledge to accomplish interoperability of mobile money by 2027.
As part of this, all member states will be required to join the Pan-African Payment and Settlement System (PAPSS), permit cross-border mobile money interoperability, and create a regulatory framework that will govern mobile money operations across the continent.
The African Union’s objective of establishing a single, unified market for Africa is significantly closer to reality with the adoption of mobile money interoperability. It is anticipated to boost the continent’s overall economic integration, encourage economic growth, and lower transaction costs.
