President William Ruto has proposed the formation of a local currency that will stimulate trade in the African continent.
Speaking on Monday, May 29 during the opening of the African Continental Free Trade Area (AfCFTA) Council of Ministers Meeting and the African Private Sector Dialogue on AfCFTA in Nairobi, Ruto said that most businessmen are struggling to make payments for goods due to the dollar shortage.
"We are all struggling, and all our businessmen are struggling to make payments for goods and services from one country to another because of differences in currency. In the middle of all this, we are all subjected to a dollar environment, Kenyans want to pay for Tanzania goods in dollars, and Tanzanians want to pay for DRC goods in dollars, why are we bringing dollars in the middle of our trade?" Ruto posed.
He added, “In the process, all our business people are stranded, Egypt cannot pay for our tea because they are looking for dollars, we cannot pay for their sugar because we are also looking for dollars.”
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President Ruto however noted that the African Export-Import Bank has already built a centralized payment system that will enable payments across the African continent.
"I had a conversation with President Orama of the Africa Exim Bank, and they have built a mechanism where all our traders can trade in the local currency and we leave it to the Africa Exim Bank to settle the payments in local currency," Ruto stated.
The Head of State at the same time asked African countries the private sector and development partners to partner in fixing infrastructure to stimulate trade in the region.
He noted that the lack of an efficient transport system continues to impede investments in the continent.
“This has made it costly to do business, thereby reducing the continent’s competitiveness,” he said.
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