John Mahama pushes for local currency settlements to boost African trade

President John Mahama has called for the adoption of local currency trade settlements and integrated digital payment systems to accelerate economic integration across the African continent. Speaking during a summit in Moscow on October 29, 2026, the President emphasized that these financial innovations are essential to boosting intra-African trade and maximizing the benefits of the African Continental Free Trade Area (AfCFTA). He highlighted that reducing reliance on foreign currencies for regional transactions would significantly lower the cost of doing business.

Highlighting the current state of regional commerce, President Mahama noted that intra-African trade currently accounts for only 16% to 17% of the continent's total trade volume. He expressed optimism that with the implementation of connected payment systems and visa-free travel, this figure could surpass 25% within the next five years. The President argued that allowing businesses to transact across borders using mobile money and local currencies would remove significant barriers that currently hinder small and medium-sized enterprises from expanding their reach.

A major theme of the President's address was the need for more accessible and affordable financing for the private sector. He observed that financial markets in Africa currently provide more incentives for financing government debt than for supporting local enterprises. This trend, he warned, poses a threat to economic integration, as it starves local industries of the capital needed to grow. He advocated for a shift in focus toward empowering entrepreneurs to drive production and innovation within the regional market, supported by improved infrastructure.

These proposals are expected to form the core of the upcoming Africa Prosperity Dialogues 2027, which President Mahama will host in Ghana from January 13 to 15, 2027. The event, supported by the African Development Bank and other strategic partners, aims to develop actionable strategies to link mobility, payments, and commerce for Africa's 1.5 billion people. By creating a more connected economic system, the President aims to foster a period of sustained growth and industrialization across the continent.