The Feasibility of an African Monetary Union to Fully Implement the AfCFTA

This chapter delves into the feasibility of establishing an African Monetary Union to fully implement the African Continental Free Trade Agreement (AfCFTA). It explores the historical context, including the Abuja Treaty and Agenda 2063, which set ambitious goals for African unity and economic integration. The text analyzes the challenges of forming a monetary union in Africa, focusing on convergence criteria such as inflation, interest rates, budget deficits, and public debt. It draws parallels with the European Monetary Union, highlighting the lessons that can be applied to Africa. The chapter also examines the current state of regional economic communities, customs unions, and free trade areas in Africa, emphasizing the need for deeper integration. The conclusion argues that while an African Monetary Union is a distant goal, a Continental Customs Union is more achievable and should be the focus. The text underscores the importance of regional cooperation and diversification of exports to unlock the benefits of trade for sustainable growth and economic development in Africa.