African Financial Ecosystem

Book excerpt: Historically and contextually, various integration models were experimented with by colonial powers, but these systems largely collapsed post-independence. For instance, the French attempted to maintain cohesion but prioritized their own interests, leading to fragmentation. Efforts in East and West Africa similarly faltered, as each nation pursued its own agenda without a unified political will. South Africa made a notable attempt, but integration never materialized; it would have required a different approach, such as the adoption of a SADC currency. The recent endeavors of AES countries and Zimbabwe’s new currency inject fresh dynamics into this ecosystem. Concurrently, the rise of new technologies presents both challenges and opportunities for financial integration. Public organizations and pan-African institutions play crucial roles in navigating this journey, where the political dimension holds significant sway. Additionally, international dynamics, exemplified by initiatives like those of the BRICs, further influence the landscape. Taken together, these elements paint an intriguing picture, fostering discussions on the African ecosystem and brainstorming plausible solutions. The ultimate aim is to achieve, within a reasonable timeframe, a monetary union and a common African currency.