Vice President Jeremiah Kpan Koung has disclosed that six African countries are expected to work towards the implementation of a single currency regime to achieve economic integration. Speaking Tuesday, September 10, 2024 at the 17th Annual Banking and Finance Conference in Abuja, Nigeria, Vice President Koung listed the countries including Liberia, Ghana, Gambia, Guinea, Sierra Leone and Nigeria.
According to him, the policy framework will lay the foundation for the realization of a common currency for all ECOWAS member states.
The Vice President said to achieve the vision, the six countries have a collective responsibility to make sound economic decisions to reduce debts and stabilize exchange rates.
“As the global economy continues to expand, African leaders have emphasized the need for regional economic integration, trade and commerce. With the signing of the African Continental Free Trade Area, we have an opportunity to harmonize fiscal and monetary policies and encourage intra-Africa trade through our banking institutions,” he said.
Koung said while Liberia is currently experiencing a gradual expansion of commercial banks within its economy, he strongly believes that a call for more investment and development banks is necessary for rapid economic growth and development. “These investment banks are more flexible for long-term loans and relatively offer low-interest rates. For our economy to accelerate quickly, it will require the provision of capital for investment in energy, agriculture, infrastructure, trade, and exploration.”
In Liberia, Koung disclosed that the Liberia Bank for Development and Investment (LBDI) is the only investment and development bank in the country, saying, although it also performs both investment and commercial functions, the LBDI lacks the capital required to contribute to Liberia’s ambitious economic transformation plan.
“Considering the absence of other investment and development banks within our economy, we have relied heavily on multilateral development institutions like the African Development Bank, the World Bank and others, to finance our development projects,” Koung said. The vice president added that the convergence at the conference must offer a new strategy for banking and investment, especially in struggling economies.
“Let us be reminded that economic empowerment of individuals and small businesses is critical for savings and investments. We should never forget about the opportunities that come with investment in our local economies. As leaders, we have an essential role in working with our national institutions to create a safe environment where trade and investment can succeed,” Vice President Koung said.
The Vice President said to strengthen the banking sector, Africa must continue to work on policy reforms to reduce the rate of default on loans by borrowers; saying, it is a major challenge for the banking sector, and many of the banks continue to report losses based on default payments on loans.
He said in Liberia, the Central Bank is working very hard to support banks with high default rates to improve the nation’s foreign exchange reserves.
“I remain hopeful that this conference will engender new policy directions to collectively improve our banking sectors and offer new opportunities for investments, trade, and commerce,” he said, while pledging Liberia readiness to embrace potential investors that will transform the lives of citizens.
