Monrovia, Liberia – Six African nations are anticipated to pursue the adoption of a unified currency regime in order to attain economic unification, according ac Vice Liberia’s President Jeremiah Kpan Koung. Vice President Koung said the nations are Liberia, Ghana, Gambia, Guinea, Sierra Leone, and Nigeria speaking Tuesday, September 10, 2024 at the 17th Annual Banking and Finance conference in Abuja, Nigeria.
He said the policy framework will set the stage for the establishment of a shared currency for every ECOWAS member state. The vice president added that the six nations have a shared obligation to make wise economic decisions to lower the debt and stable the exchange rates if we are to reach the objective.
African leaders have underlined the need of regional economic integration, trade, and industry as the global economy keeps growing. We have a chance to unify fiscal and monetary policies and promote intra-African commerce through our banking institutions once the African Continental Free commerce Area is signed, he said.
Though Liberia is already seeing a slow expansion of commercial banks in its’ economy, Vice President Koung said he firmly feels a demand for additional investment and development banks is essential for speedy economic growth and development.
“These investment banks are more flexible for long-term loans and relatively offer low-interest rates, our economy will need finance for investment in energy, agriculture, infrastructure, trade, and exploration if it is to speed up rapidly,” Liberia’s vice president remarked.
He maintained that the only investment and development bank in Liberia is the Liberia Bank for Development and Investment (LBDI), which lacks the capital needed to support Liberia’s ambitious economic transformation plan even if it also serves commercial purposes.
“Considering the absence of other investment and development banks within our economy, we have relied heavily on multi-lateral development institutions like the African Development Bank, the World Bank, and others to finance our development projects.”
The vice president also mentioned that, particularly in developing countries, the convergence at the conference should present a fresh approach for banking and investment.
“Let us be reminded that savings and investments depend on personal and small enterprise economic empowerment. We should never overlook the chances that accompany financial support of our local businesses. Leaders like us have a great responsibility in collaborating with our national institutions to establish safe conditions where trade and investment may flourish.”
VP Koung said the ARREST Agenda of the government of Liberia presents chances to inspire possible investors in the spheres of agriculture, infrastructure, rule of law, education, sanitation, and tourism.
Noting that it is a major challenge for the banking sector and many of the banks continue to report losses based on default payments on loans, the Vice President said that Africa must keep working on policy reforms to lower the rate of default on loans by borrowers if it is to strengthen the banking sector.
In Liberia, he noted, the Central Bank is actively helping banks with high default rates to increase foreign exchange reserves for the country.
“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. Liberia stands ready to embrace potential investors. The lives of our people must be transformed. Only then, we can boast of the acceleration of economic growth and development.”
Photo credit: VP Office
Reported by: Prince Saah
Contact: +231778239813
Email: saahprince119@gmail.com
