African countries intend to have a common currency, Dr Maxwell Mkwezalamba, the Commissioner for Economic Affairs of the African Union Commission (AUC) has said.
Mkwezalamba made the statement at a news conference yesterday in Addis Ababa. He said the African Investment Bank and the African Monetary Fund would also be established.
Mkwezalamba said that the protocol establishing these institutions was adopted at the last AU Summit in Libya."Nigeria will host the African Central Bank, while the African Investment Bank will be in Libya. "The African Monetary Fund will be sited in Cameroon," he was quoted him saying.
Mkwezalamba said that the AUC had been working in collaboration with the Association of African Central Banks on the regional central bank.
He said that the Nigerian government had identified offices which would be used for the bank, while the AUC had secured office accommodation for African Monetary Fund in Cameroon.
Mkwezalamba said that the formation of the central bank meant that national central banks would cede part of their functions to the regional bank.
Besides, Mkwezalamba said that NEPAD had been transformed to NEPAD Planning and Coordinating Agency (NPCA) and the new agency would operate under the aegis of AUC Chairman Jean Ping.
He said that the budget of NPCA would be incorporated into the budget of the AUC, while its other sources of finance, including contributions from member states, would be identified.
Reacting to concerns that the new investment bank would be a duplication of the African Development Bank (fDB), Mkwezalamba said that the two banks would play complementary roles.
Mkwezalamba conceded that AfDB was playing a very important role in financing Africa's development, adding, however, that Africa had only 60 per cent equity in the bank.
He also said that while the AfDB financed projects in African countries, the African Investment Bank would finance only regional projects.
On the central bank, Mkwezalamba said that there would be some emerging challenges when the bank became operational.
"Inflation numbers would converge, as inflation rates vary from country to country," he said, adding that there would be a need to bring the inflation rates to a uniform and manageable level.
NAN
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i am humbled to learn that some of our African leaders,are so devoted to the development of our motherland. this is encouraging keep it up. however, i would like to see a move like this, one currency africa, to be emulated into the establishing African Unity. one currency Africa, with no doughts has well defined benefits but have we thought about the benefits of African Unity? it would be more than just unity but a continent with competative markets and one that would take charge of its own affairs. i urge all our Politicians to work together to the establishment of African Unity, and i hope in doing so they will involve all citizens of africa; the youths of africa are crutial to the unity of Africa, the elders; the kings, chiefs, the mayors, and the small group leaders are all crutial to the unity of Africa.