Single Currency for Africa; is it Possible? A Theoretical Review

Abstract

Despite being endowed with vast resources, Africa remains the poorest continent in the world. One effective way of eradicating poverty is through economic integration of continent economies as one economic zone with a single currency. Integration requires formulating convergence criteria acceptable by all participating countries. Implementing a convergence criterion calls for willingness and commitment amongst political leadership of republic states in Africa, merging of regional economic blocks that are spread across continent and countries accepting loss of sovereignty in some economic, financial and social policies. This paper reviews a likely process of convergence criteria, benefits and challenges of having a single currency in Africa.