Currency exchange: a traveller’s dilemma
Adéṣẹ́gun Ọṣìbánjọ
For many African travellers, embarking on a journey across the continent is an exciting venture until they face the frustrating reality of multiple currency conversions.
Take, for example, 2AO, a Lagos-based tourist travelling to Nairobi. Before departure, 2AO must exchange Naira for U.S. dollars in Lagos and then convert the dollars to Kenyan Shillings upon arrival. On the return trip, the process repeats, adding unnecessary financial strain and inconvenience.
These inefficiencies do not simply create inconvenience, they reinforce Africa’s dependence on foreign currencies, such as the U.S. dollar and the Euro. Every transaction that requires conversion into dollars strengthens external economies at the expense of African currencies, reducing their global value and making Africa’s financial system less competitive.
The introduction of a single African currency would eliminate these barriers, making travel within Africa far more seamless and encouraging African citizens to explore their continent without unnecessary financial burdens.
Trade and SMEs: Breaking Free from Foreign Intermediaries
Beyond tourism, the need for a unified currency is felt deeply in trade. African businesses continue to rely on costly foreign financial intermediaries for transactions across borders. Nigerian traders exporting goods across Africa must navigate Form M or import license processing, international funds transfers, and letters of credit are all handled through European and American banks.
This system creates major financial inefficiencies, including: High transaction costs, Slow processing times, and Exchange rate risks.
For Small and Medium enterprises (SMEs), this weakens competitiveness, making cross-border trade unnecessarily complex and expensive. A single African currency would allow businesses to conduct transactions directly, reducing costs and simplifying processes, boosting intra-African commerce while increasing African financial autonomy.
Additionally, African nations suffer from exchange rate volatility, which affects prices and complicates trade agreements.
Removing dependency on external currencies and allowing businesses to transact directly in a unified African currency would lead to greater price stability, economic growth, and increased investor confidence in African markets.
Championing Intra-African Trade
Nigeria’s Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, has been a steadfast advocate for Africa’s economic integration, particularly through the African Continental Free Trade Area (AfCFTA). Alongside fellow African Ministers of Trade, she has worked tirelessly to eliminate trade barriers and position Nigeria as a driving force in intra-African commerce.
A major challenge in AfCFTA’s implementation is the absence of a single African currency, which complicates transactions across borders. Currently, businesses must navigate multiple exchange rates, increasing transaction costs and limiting the fluidity of trade. This reliance on external financial institutions for currency conversions weakens Africa’s economic sovereignty, making trade within the continent more expensive and less competitive.
Dr. Oduwole has stressed that a unified currency would be a transformative step in creating a seamless trade ecosystem. Without it, African businesses face delays, financial losses due to fluctuating exchange rates, and difficulties in establishing predictable pricing models. The lack of a single currency also hampers the effectiveness of the Pan-African Payment & Settlement System (PAPSS), an initiative designed to facilitate swift and cost-efficient payments across African nations.
Despite these challenges, Nigeria remains committed to AfCFTA’s objectives, working to enhance regional payment systems and strengthen trade policies that minimise currency volatility. Through initiatives such as the Guided Trade Initiative, Nigeria continues to pursue sustainable solutions that will reduce financial barriers and promote a truly integrated African market.
Dr. Oduwole’s vision remains clear: an Africa where businesses thrive without financial constraints, and where African nations, not external forces, drive trade.
Overcoming Divide-and-Conquer Strategies
Despite the clear benefits of a unified African currency, significant obstacles remain. The West’s centuries-old ‘Divide-and-Conquer Strategy’, born from the 1884 Berlin Conference, still plays a role in keeping Africa economically fragmented.
For decades, African leaders have been incentivised to maintain economic division, not because it benefits their citizens, but because it serves the interests of Western economies. By keeping African economies disconnected and dependent on foreign financial structures, external entities maintain control over Africa’s natural resources, trade routes, and wealth creation.
The carrot-and-stick approach remains a key tool of control:
African leaders who maintain division are often rewarded through financial and political support.
READ ALSO: Nigeria Submits AfCFTA Tariff Offer, Commits to 90% Duty-Free Trade Across Africa
Leaders who push for unity and self-sufficiency frequently face opposition, economic sanctions, or political instability engineered from abroad.
A single African currency disrupts this system, making it harder for foreign financial institutions to dictate the economic trajectory of African nations.
This is why opposition often emerges from within African governments themselves—leaders afraid of losing foreign financial backing frequently block initiatives that promote unity.
This marks the second item on the African Citizens’ Expectations Agenda of the Africa Woke Citizens Platform (AWCP) sent to the African Union Commission (AUC), pushing for public discussion and transparency on Africa’s financial independence. The people of Africa are waking up to the need for true economic sovereignty, and the demand for action is growing louder.
Breaking the Barrier
To withstand external pressures, Africa’s leading economies must rise as continental Hegemons, fostering unity, deepening cooperation, and championing financial sovereignty.
Nations such as Nigeria, South Africa, and Egypt must assume responsibility for leading Africa’s financial transformation. They must: Strengthen the African Union’s institutional framework, Develop economic synergies across borders, Promote political and economic stability across the continent.
By fostering collaboration, these nations can build a strong African economic bloc, reducing dependency on Western financial institutions. Their leadership must go beyond symbolic gestures—it must translate into concrete policy actions, including: Establishing a unified financial system, Enhancing intra-African trade agreements, Facilitating investment opportunities across borders.
Without decisive leadership, Africa risks remaining fragmented, unable to fully capitalize on its abundant resources, entrepreneurial dynamism, and industrial potential. A strong African-led financial framework would give Africa greater leverage in global negotiations, securing economic sovereignty and removing external economic control.
Uniting Africa Towards Financial Independence
The establishment of a single African currency is both ambitious and necessary, one that would remove barriers, empower African businesses, and boost tourism.
As Dr. Oduwole and other champions of African trade continue their advocacy, momentum is building toward an Africa that controls its economic destiny.
This shift goes beyond financial benefits; it represents Africa’s rightful place in the global economy. No longer should African nations be forced into fragmented, inefficient trade systems that serve foreign interests. No longer should African citizens suffer financial hardships from a system designed to limit their economic freedom.
The era of relying on foreign institutions to dictate Africa’s future must come to an end. The single African currency could be the turning point, an opportunity to unify Africa financially, create stronger trade links, and establish a self-sustaining African economy for generations to come.
God bless Africa!!!
Adéṣẹ́gun Olútáyọ̀ Adéolú Ọṣìbánjọ is the convener, Africa Woke Citizens Platform (AWCP).