Africa: Creation of African Central Bank Considered – BCT Governor

The Central Bank of Tunisia (BCT) is working, in coordination with the central banks of other African countries, to increase cooperation in the fields of finance, integration and modernisation of African payment systems, with the aim of creating an African Central Bank, Governor of the BCT Marouen Abbassi said on Thursday.

He was delivering remarks on behalf of President of the Republic Kais Said, at the opening of the international conference «Financing Investment and Trade in Africa» FITA 2021, held on June 24 to 26 in Tunis.

The fight against the pandemic is an absolute priority, requiring the vaccination of the largest possible part of the population, he said.

Abassi emphasised the need to combine all efforts to ensure equitable distribution of vaccines and diagnostic and treatment equipment.

He also urged mobilising the support of multilateral financial institutions to back public investment in the digital sector.

The World Bank expects investments ranging between 80 and 100 billion dollars in Africa over the next ten years, he pointed out.

He added that efforts should be directed in the coming period towards multiplying air, sea and land links between African countries, enhancing the presence of banks to promote business and accelerating the establishment of free trade areas at the regional and continental level.

The BCT governor noted that Tunisian transactions with the continent (excluding Arab countries) are very limited and represent only 2% of Tunisia’s exports and 0.5% of its imports.

The value of the continent’s economy, including trade in goods, does not exceed 2.4% of the world trade in 2020. Therefore, he said African countries face major challenges, including the revival of their economic activities and the control of their debts.

The IMF expects the total additional financing, required by African countries during the period 2021-2025, to reach 285 billion dollars, half of which is intended for countries with limited resources, he said.

Abassi told reporters that, unlike insurance companies, Tunisian banks have not mobilised enough investment for the African continent. However, several banking institutions are planning to launch investments in Africa soon.