Building capacity to help Africa trade better

Does Africa Need a Continental Common Currency?

Trade Briefs

Does Africa Need a Continental Common Currency?

Does Africa Need a Continental Common Currency?

Registration to the tralac website is required to download publications.

In March 2022, South African International Relations and Cooperation Minister Naledi Pandor reaffirmed the commitment of her government to a continental monetary union, also known as a ‘common currency’. She said South Africa supports the creation of African monetary institutions – the African Central Bank, African Investment Bank and African Monetary Institute – as pillars of the common currency system that would be implemented. This move, she said, would support continental economic and trade integration, a process already embarked upon with the founding of the African Continental Free Trade Area (AfCFTA).

This trade brief attempts to cast light on the prospect of an African continental common currency by examining the inter-relationships of the types of economic integration arrangements and the economic rationale and potential pitfalls of a single currency. It also discusses the experiences of existing currency areas in Africa and gives an update on the progress towards monetary unification in the ECOWAS and EAC regional economic communities.

Readers are encouraged to quote and reproduce this material for educational, non-profit purposes, provided the source is acknowledged. All views and opinions expressed remain solely those of the authors and do not purport to reflect the views of tralac.


Email This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel +27 21 880 2010