The African Union has announced that its Specialised Committee on Finance, Monetary Affairs, Economic Planning and Integration will discuss the launch of a payment system for the African Continental Free Trade Area (AfCFTA) from the 1st to the 3rd of December.
The African Union disclosed this on Tuesday evening, the meeting will be 2 days before the planned deadline on the ratification of the agreement.
What you should know
The African Continental Free Trade Area (AfCFTA) is one of the biggest free-trade agreements in the world right now with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion
The Federal Government announced that it has ratified Nigeria’s membership to the African Continental Free Trade Area (AfCFTA), ahead of the December 5, 2020 deadline. The agreement goes into effect from the 1st of January 2021.
Mr. Francis Anatogu, Secretary, National Action Committee on AfCFTA, stated that the agreement would reduce the erosion of the naira, which has suffered nearly 90% devaluation since 2016, through exports of Nigerian-made goods and services, and give exposure of the naira to other currencies.
The African Union is building a Continental Payment System that would help ease payment integration in AfCFTA countries. The theme of the meeting will be “Securing Africa’s Taxing Rights, Stemming Illicit Financial Flows and developing payment system for AfCFTA”.
The AU disclosed that it would be a major step towards the Agenda 2063 for Africa. They also added that the meeting will discuss implementations of “Aspiration1”, which aims for continental inclusive growth and development.
They will also discuss how to prevent illegal capital flight and tax challenges surrounding the agreement due to the rising African Digital Economy.