Regional Policy Convergence and the Quest for a Single Currency Possibility for Africa

The objective of this article is to explore the possibilities of Africa to converge its policies towards establishing a common currency for the continent. Africa lags in economic development, as it is home to quite a number of very underdeveloped countries in the world. The European Union through th...

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Bibliographic Details
Published inAfrican journal of public affairs Vol. 12; no. 2; pp. 85 - 100
Main Authors Enaifoghe, A, Maduku, H
Format Journal Article
LanguageEnglish
Published Hatfield African Consortium of Public Administration (ACPA) 01.08.2021
University of Pretoria, Economic and Management Sciences
Subjects
Africa Union
Capital
Capital movement
Common currency
Convergence
Currency
Developing countries
Economic development
economic growth
Free trade
LDCs
Monetary unions
Money
policy convergence
Supervision
Treaties
Africa
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Summary:The objective of this article is to explore the possibilities of Africa to converge its policies towards establishing a common currency for the continent. Africa lags in economic development, as it is home to quite a number of very underdeveloped countries in the world. The European Union through the same system has benefited from free trade, access to new markets, free movement of capital and labour. Africa for decades has been the supermarket continent for the rest of the World mostly the West and China to be specific. The theory of optimum currency areas (OCA) looks at the criteria, expenses and advantages of entering or framing a common currency region. The theory devised the most proficient method to pick the ideal exchange measure for economic development. From the findings and conclusions, it is recommended for Africa to have common monetary and economic union, with a well-functioning economies that should take the lead through the supervision of the African Union. There is also a need for increased political will among member states so that their monetary and fiscal policies get aligned to achieve policy convergence in the continent. With all the possible benefits of a single currency spelt out to member countries, the African Union ought to be tasked to make sure regular engagements are done to speed up the process so that the objectives of the Abuja Treaty of 1991 can be realised.
ISSN:1997-7441
DOI:10.10520/ejc-ajpa_v12_n2_a6