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Tuesday, July 16, 2024

MoMo interoperability better than single African currency — Bawumia

The symposium was held under the theme, of scaling up interoperability and using Mobile Money to Buy and Sell.

He highlighted the transformative impact of MoMo interoperability, emphasising its ability to simplify cross-border transactions and promote financial inclusivity across diverse economic landscapes.

He pointed out that while the concept of a single currency has theoretical benefits, the practical challenges and disparities among African economies could hinder its successful implementation.

Citing successful implementations in Ghana and other African countries, Bawumia underscored the role of mobile money in driving economic growth and empowering individuals and businesses.

He said “Making mobile money interoperable allows our citizens across the continent to trade seamlessly and so this is where I believe as African countries we need to focus on. One of the common problems of achieving a common currency was the difficulty of our respective countries in achieving macroeconomic convergence.

The idea of a common currency which came in 1963 has really been overtaken by the digital payment age that today you can think about mobile money as a common currency. If we make it interoperable, we don’t need to have the common currency before we get the benefits.”

He stressed the need for African nations to prioritise scalable solutions that can accommodate the continent’s diverse economic realities and developmental stages.

The Vice President’s remarks come amid ongoing discussions within the African Union and regional economic communities about the feasibility and desirability of a single currency.

Advocates argued that a unified monetary system could potentially reduce transaction costs and currency risks, thereby facilitating greater economic integration and stability across the continent.

Bawumia’s endorsement of MoMo interoperability reflects a pragmatic approach to addressing these challenges while leveraging Africa’s rapidly growing mobile penetration rates and digital payment infrastructure.

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