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LUSAKA. –  A consultative meeting of African countries on the establishment of African Union (AU) financial institutions kicked off here yesterday with a call for participants to devise mechanisms to accelerate the establishment of these institutions.

The three-day meeting has gathered participants from member countries’ finance ministries, central banks, AU organs, regional economic communities and development partners, with the purpose of addressing the economic and political challenges that hinder member states from signing and ratifying legal instruments necessary for establishing the financial institutions.

The AU’s constitutive Act mandates the creation of three financial institutions: the African Central Bank, the African Monetary Fund, and the African Investment Bank.

Zambian Minister of Finance and National Planning Situmbeko Musokotwane emphasized the importance of establishing these financial institutions, highlighting their crucial role in supporting the realization of the benefits of the African Continental Free Trade Area (AfCFTA).

“The timing of this consultative meeting is crucial as the African Continental Free Trade Area aims to eliminate trade barriers and boost intra-Africa trade,.

Acknowledging the slow progress in establishing these institutions due to various challenges, the minister also noted significant headway, such as adopting macroeconomic convergence criteria to guide the harmonization of fiscal and monetary policies. – Xinhua