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Africa is not ready for a common currency: Mbeki

Thabo Mbeki
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Former President Thabo Mbeki has commended the African Union’s (AU) declaration towards a free trade area, but warns that the continent is not ready for a common currency.

Mbeki was addressing students at the University of South Africa (Unisa) where he said that the free trade area is necessary – but will be difficult to implement. He also touched on the land question, saying it needs more work than raising hopes.

“It’s not going to be easy in the end. The agreement will be reached, but you will also face the problem of tariffs. You can say let us remove the tariffs, lets reduce them. Then there is another problem that arises, which is a problem of non-tariff barriers. So it is going to be a big struggle to get this thing to work, but it is important that it works… And about this economic integration on the continent – there also has been this view that there should be a common currency. I don’t think we are ready at this stage on the continent where we can have such this. There are too many conditions that need to be met.”

Meanwhile, President Cyril Ramaphosa encouraged South Africans to participate in domestic and international endeavours, while speaking at the Ubuntu awards in Cape Town.

Ramaphosa said the country takes pride in recent signing of the declaration on the establishment of the African Continental Free Trade Area in the Rwandan capital, Kigali.

He said the deal signifies an unequivocal commitment to the achievement of a free trade area in the continent.

 

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