In a recent opinion piece published in the Lusaka Times on Tuesday, African Union Commissioner for Economic Development Albert M. Muchanga highlighted the challenges facing Africa's economies, including the impact of global inflation fueled by the COVID-19 pandemic, the conflict in Ukraine, and, to some extent, drought.
"The African Monetary authorities have the supreme duty to bring down the levels of inflation across Africa, which are currently in the range of single-digit to three-digit levels across our countries, the highest being 157.9 percent," he wrote.
The AU official argued that bringing down inflation will not only improve the lives of Africans but also create a conducive environment for the implementation of the African Monetary Program. This program, adopted by the AU in 2022, aims to establish an African Central Bank and a later single African currency.
Muchanga stressed that a single currency is essential for boosting intra-African trade and making the continent's economy more resilient to external shocks. He also pointed out that the African Monetary Institute, once operational as the African Central Bank, will have a seat at the G20 Finance Ministers and Central Bank Governors meetings.
"The continent needs a single African currency to, among others, increase Intra-African trade flows, and this is key to strengthening the African economy and making it more resilient to endogenous and exogenous shocks," he stressed.
Furthermore, Muchanga highlighted the recent establishment of the African Credit Rating Agency, which will contribute to the development of a Pan-African capital market.