AU Greenlights Mobile Money Interoperability Across Africa to Enhance Economic Unification
The African Union has given its approval to President Nana Addo Dankwa Akufo-Addo’s proposal for mobile money interoperability across Africa, marking a significant stride towards economic integration.
In an effort to streamline transactions and bolster economic cohesion, the proposal was ratified following President Akufo-Addo’s presentation of two pivotal reports at the AU Mid-Year Coordination Meeting in Accra, Ghana.
The reports, titled “Establishment of the African Union Financial Institutions (AUFIs)” and “Scaling up Interoperability for Economic Integration: Using Mobile Money to Buy and Sell Across Africa,” received broad support from the Union.
The endorsement paves the way for the deployment of mobile money interoperability, a move expected to enhance the quality of life for Africans, promote economic unity, and boost intra-African trade.
Africa, which already accounts for over 70% of global mobile money transactions, stands to benefit immensely from this initiative.
President Akufo-Addo underscored the critical importance of mobile money interoperability, highlighting its potential to empower Africans to use digital wallets for cross-border transactions, thereby creating economic opportunities and addressing youth unemployment.
In a call to action, the African Union urged member states, regional economic communities, and relevant stakeholders to commit to achieving mobile money interoperability by 2027.
This includes mandatory participation in the Pan-African Payment and Settlement System (PAPSS), enabling cross-border mobile money transactions, and establishing a unified regulatory framework for mobile money operations continent-wide.
The AU’s approval brings the continent closer to its goal of a single, unified market, with anticipated benefits including enhanced economic integration, accelerated economic growth, and reduced transaction costs.
