We Want a Single African Currency to Enable Seamless Trade – Pearl Nkrumah

Introduction

In a bold call for deeper economic integration across the continent, Pearl Nkrumah, Managing Director of Access Bank Ghana and Chairperson of the Ghana Stock Exchange, has advocated for a unified African currency. Speaking at the 2026 Africa Prosperity Dialogues in Accra, she highlighted the urgent need to simplify cross-border payments and reduce dependence on foreign currencies like the US dollar. Her vision aligns with broader efforts under the African Continental Free Trade Area (AfCFTA) to boost intra-African trade and economic cooperation.

Key Points

Background

Africa’s economic landscape is marked by a patchwork of national currencies, each with its own exchange rate and regulatory framework. This fragmentation creates friction for businesses seeking to expand across borders. The African Continental Free Trade Area (AfCFTA), launched to promote intra-African trade, aims to create a single market for goods and services. However, the absence of a common currency remains a significant barrier.

Access Bank, under Pearl Nkrumah’s leadership, has pioneered cross-border payment solutions, allowing customers to send funds in local currencies such as the Ghanaian Cedi, Nigerian Naira, South African Rand, and Zambian Kwacha. Despite these advances, the final settlement often requires conversion to the US dollar, adding cost and complexity.

Analysis

The push for a single African currency is not new. Economists and policymakers have long recognized that a unified monetary system could reduce transaction costs, eliminate exchange rate risks, and foster deeper economic integration. Pearl Nkrumah’s advocacy reflects a growing consensus that Africa’s economic future depends on breaking down barriers to trade and investment.

Currently, businesses operating across Africa face a maze of regulations and currency conversions. For example, a Ghanaian exporter selling to Nigeria must navigate multiple currency exchanges, often settling transactions in US dollars. This process is not only costly but also exposes businesses to exchange rate volatility and delays.

Access Bank’s initiatives demonstrate the potential for innovation in this space. By enabling payments in local currencies, the bank has made it easier for businesses to trade across borders. However, the reliance on the US dollar for final settlement remains a bottleneck. A single African currency would eliminate this step, making trade faster, cheaper, and more efficient.

The AfCFTA provides a framework for deeper integration, but its success hinges on addressing structural issues like payment systems and regulatory harmonization. A unified currency could serve as a catalyst, unlocking the full potential of the free trade area and accelerating Africa’s economic growth.

Practical Advice

For businesses looking to expand across Africa, consider the following steps:

– **Leverage Multi-Currency Accounts**: Use banks that offer accounts in multiple African currencies to reduce conversion costs.
– **Stay Informed on Regulatory Changes**: Keep up with updates on AfCFTA implementation and regional payment initiatives.
– **Adopt Digital Payment Solutions**: Embrace fintech platforms that facilitate cross-border transactions in local currencies.
– **Advocate for Policy Reform**: Support efforts to harmonize regulations and promote a single African currency.

FAQ

Conclusion

Pearl Nkrumah’s call for a single African currency highlights a critical step toward realizing the vision of a more integrated and prosperous Africa. While challenges remain, initiatives like Access Bank’s multi-currency platform and the AfCFTA provide a foundation for progress. By addressing payment fragmentation and regulatory barriers, Africa can unlock new opportunities for trade, investment, and economic growth. The journey toward a unified currency may be complex, but the potential rewards for businesses and consumers across the continent are immense.