https://www.engineeringnews.co.za

Central banks vital for Africa’s integration, says Zuma

15th August 2017

By: African News Agency

  

Font size: - +

President Jacob Zuma has encouraged African central bank governors gathered in Pretoria for the 2017 Governors’ Symposium of the Association of African Central Banks (AACB) to explore ways to improve economic integration, including linking payment systems, across borders on the continent.

“Central banks have an important role to play in promoting inter-continental trade, linking the payments systems across the continent, developing a well-functioning and efficient banking system, promoting cross-border banking and capital flows,” said Zuma in his opening remarks at the South African Reserve Bank in Pretoria.

“Apart from improving integration, these objectives also underpin sustainable and inclusive economic development and will contribute to the eradication of poverty on the continent.”

He urged the central bank governors to support the African Union’s different mechanisms and conventions which have been adopted to bridge the economic divide and hurdle experiences in intra-continental business.

“In 2013, the African Union adopted Agenda 2063 which strongly promotes economic integration across the continent. Agenda 2063 is premised on the view that a prosperous Africa is based on inclusive growth, sustainable development; good governance and a strong focus on regional integration. By reducing fragmentation and spatial exclusion, Africa can realise its substantive potential for sustainable and inclusive growth,” he said.

“Integration into the continental and global trade and economic networks is crucial for the development of the continent. However, the recent move towards more protectionist policies by some developed countries could have implications on the pace of globalisation going forward.”

Zuma said easier international payment regulations potentially meant increased revenue for African countries, as more expatriates could channel funds to their home countries.

“An efficient payment system that allows for timely and cost effective cross border payments has a critical role to play in promoting regional trade. A well-functioning payment system is also crucial for the transfer of migrant remittances which has become a major source of external finance for Africa. During 2016, remittance flows accounted for over half of total private flows in Africa,” he said.

“We count on the central banks to assist with the development of the payments systems across the continent that would assist in this regard. It is now generally accepted that growth will not be sustainable if it is not inclusive. Financial inclusion is an important pillar of inclusive growth.”

Zuma said he was “pleased” as the South Africa Reserve Bank assumes the presidency of the AACB in the next year.

“I am sure that the bank [SARB] will, in collaboration with the other central banks on the continent, drive some concrete initiatives in support of Agenda 2063 during its presidency. South Africa will also assume the chair of the SADC [Southern Africa Development Community] this month. We will ensure that the projects to be pursued in SADC are closely aligned with those of the African Union,” Zuma said.

The AACB was established in May 1963 at the Summit Conference of African Heads of State and Governments held in Addis Ababa, Ethiopia. Its main objective is to promote cooperation in the monetary, banking and financial spheres in the interests of maintaining price and financial stability in Africa.

Edited by African News Agency

Comments

Showroom

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.

VISIT SHOWROOM 
Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.24 0.297s - 157pq - 2rq
Subscribe Now