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The 23rd Ordinary Summit of Heads of States and Governments of the African Union and African Monetary Fund exaggerated ambition, by Chofor Che, 7 July 2014

01 Jul

The 23rd Ordinary Summit of Heads of States and Governments of the African Union (AU) ended on Friday the 28th of June 2014 after two days of discussions in Malabo, Equatorial Guinea. In attendance were the Secretary General of the United Nations (UN), Ban Ki-moon, the Prime Minister of Spain, Mariano Rajoy and the Vice President of Cuba, Salvador Valdes Mesa.

The official theme of this summit was “Agriculture and Food Security in Africa”, but according to Alfredo Tjiurimo Hengari, a Senior Research Fellow at the South African Institute of International Affairs in an op-ed dated the 26 of June 2014, few if any of the decisions during the summit focused on farming or food. He added that this is evidence that summit themes are merely symbolic and are hardly followed by intensive discussions around the subject matter. This notwithstanding, certain sources argue that the 23rd Summit is historic because at the end of deliberations, though much did not focus on farming and food, a gigantic step was made towards the financial autonomy of Africa as a continent with the adoption of the Establishing Protocol and Statutes of the African Monetary Fund (AMF) one of the AU’s Financial institutions.

Founded in 2009, the AMF has as aim to contribute to the economic stability and the management of financial crisis in Africa, giving preference to macroeconomic development and business by promoting trade amongst states in Africa. It is expected to create a common market amongst African states by 2017. Having its sit based in Yaoundé, the political capital of Cameroon, this institution is supposed to forge for a single African currency in a bid to encourage rapid regional economic integration which for the moment remains a dilemma especially with the numerous currencies on the continent. Some analysts even argue that the multitude of currencies on the continent has grossly weakened business between African states.

The putting in place of the Establishing Protocol and Statutes of the AMF arrived at in Malabo on Friday the 28th of June 2014, does not in any way mean that the African continent will suddenly become financially independent. 15 African states need to ratify the statues for the institution to go operational. An organigram for the institution needs to be set up before the recruitment of staff including a Director General.

This is indeed an ambitious agenda my Heads of State who have decided to put the cart before the horse. Many African states are still plagued by precarious financial hurdles such as heavy taxes, trade barriers and corruption. In addition to these hurdles, the Central African Republic remains mired in armed and bloody conflict, Nigeria remains tortured by the activities of the notorious Boko Haram Sect and Kenya is still seeking solutions to the Al Shabab dilemma.

In addition to the various hurdles faced by various states on the continent, Africa is still not a force to reckon with in the United Nations (UN) Security Council. Hengari in his op-ed argues that in light of a meeting which took place in May 2014, UN Security Council reform agenda in the AU remains stalled due to the rigid proposals which propped up from the Ezulwini Consensus. Hengari argues further that concerning the current institutional setup, the AU remains state-centric. While the AU accepts regional economic communities as vital building blocks in regional integration, there is no serious formal institutional rendez-vous with the assembly or the commission.

It is high time for states to resolve domestic issues like barriers to trade, over taxation and corruption. African states need to open up their boarders for trade and not close up boarders under the pretext of fighting illegal immigration just as what has been transpiring between Equatorial Guinea, Cameroon and Gabon.

It is germane for Heads of State to try and resolve the ongoing conflicts on the continent including terrorists’ attacks from groups like Boko Haram and Al Shabab. It is important for the AU to equally engage heads of communities and officials within the frame work of the commission and assembly, especially in conflict resolution and regional integration.

Considering these suggestions is germane for the AU. If such proposals are not taken seriously then the AMF dream may be another waste of time and Africa’s tax payers’ money.

 

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