fr.allafrica.com
Angola Advocates for Afreximbank Support of Pan-African Payment System
Angola urged the African Export-Import Bank (Afreximbank) to support the implementation of a pan-African payment and settlement system to facilitate trade on the continent during a ministerial forum in Cairo, Egypt, on 15-16 October 2024, ahead of the 17th meeting of the African Continental Free Trade Area (AfCFTA) Council of Ministers.
- What is the central request made by Angola, and what is its immediate impact on African trade?
- Angola requested Afreximbank's support for a pan-African payment system to ease trade transactions. This could significantly reduce reliance on foreign payment systems, potentially improving the efficiency and cost-effectiveness of intra-African trade.
- What broader implications does this request have for the AfCFTA and Africa's economic integration?
- The initiative supports the AfCFTA's goal of boosting intra-African trade by addressing payment system challenges, a key obstacle to seamless trade. A unified payment system enhances economic integration and reduces dependency on extra-continental financial institutions.
- What potential challenges or obstacles might hinder the implementation of a pan-African payment system, and how might they be addressed?
- Obstacles could include technological limitations, regulatory hurdles across different countries, and potential resistance from established international payment systems. Overcoming these requires strong regional cooperation, harmonized regulations, and potentially phased implementation focusing on simpler transactions initially.
Cognitive Concepts
Bias by Omission
While the article provides a good overview of the forum and Angola's position, it omits details on the discussions and outcomes regarding rules of origin in the automotive and textile-clothing sectors. It also doesn't mention opposing viewpoints or challenges to the proposed payment system. However, given the concise nature of the news report, these omissions may be due to space constraints rather than intentional bias.
Sustainable Development Goals
The article highlights Angola advocating for Afreximbank's support in implementing a pan-African payment and settlement system to boost intra-African trade. This directly contributes to economic growth and improved livelihoods across the continent by facilitating smoother commercial transactions and potentially creating jobs related to the new system. The focus on the African Continental Free Trade Area (AfCFTA) further emphasizes the goal of enhancing economic cooperation and development within Africa.