African Monetary Fund to be headquartered in Cameroon

African States have adopted the statute on the establishment of an African Monetary Fund, AMF, with headquarters in Yaounde, Cameroon. The statute was validated on Friday, June 27, during the 23rd Ordinary Session of the African Union, AU, which held at the Sipopo Conference Centre in Malabo, Equatorial Guinea.

The African Monetary Fund is expected to totally supersede the African activities of the International Monetary Fund, IMF, which, with only 25 billion dollars, was able to bring an entire continent to its knees and make it swallow questionable privatization like forcing African countries to move from public to private monopolies, experts have said.

African countries are now required to take the statute back, domesticate it and ratify, so that it becomes part of their laws. “From there, once African countries ratify, we bring in finances to make sure it goes operational” said the Chairperson of the African Union Commission, H.E. Dr Nkosazana Dlamini Zuma. “First step is for countries to ratify so that it comes into force” continued Nkosazana, adding, “It will be a fund that will be African, the governance will be African and that can be used for development in Africa and that will not have some of the constraints that we have with the International Monetary Fund.

It will be very beneficial once it comes into operation” said Nkosazana. The African Monetary Fund was an initiative of former Libyan Pan-African leader, late Muammar Gaddafi. Reports say Gaddafi had set aside 30 billion dollars in the Libyan Central Bank as Libya’s contribution to three key projects which would add the finishing touches to the African federation.

The three projects were the African Investment Bank in Syrte, Libya, the establishment in 2011 of the African Monetary Fund to be based in Yaounde with a 42 billion dollars capital fund and the Abuja-based African Central Bank in Nigeria which when it starts printing African money will bury the Francs CFA through which Paris has been able to maintain its hold on some African countries.

However, the 30 billion dollars was reportedly frozen by the Obama administration. In December 2010, African States unanimously rejected attempts by Western countries to join the African Monetary Fund, saying it was open only to African nations.

Meanwhile, Lesotho's King, Letsie III on Friday, June 27, warned that rising levels of underfeeding in Africa threatens sustainable development in the continent. Letsie III told reporters on the sidelines of the AU Heads of State summit in Malabo, Equatorial Guinea that countries have not responded effectively to malnutrition.

"Governments should be reminded that there is still a huge malnutrition crisis in Africa. It is abundantly clear that solving malnutrition will revitalize development," said King Letsie III in a meeting with journalists.

He was appointed by African Heads of State and Government to be a champion for nutrition during the AU summit in Malabo. Estimates indicate that 50 percent of African children under the age of five suffer from malnutrition. According to him, child malnutrition is Africa’s bane of progress and has greatly derailed economic growth in Africa.

"There are grave socio-economic consequences associated with malnutrition. Under-nourished children have impaired cognitive abilities and have less chances of securing gainful occupation as adults," said King Letsie III. Stunting among children has created a health crisis in rural villages across Africa. He noted that countries with high levels of malnutrition are grappling with poor economic performance.

"Malnutrition impacts on the education sector, erodes labour productivity and performance of strategic economic sectors like agriculture," he told reporters. As a champion for nutrition, the King of Lesotho will engage African leaders, policy makers and health advocates to lobby for increased commitment towards malnutrition.

"I call upon African leaders to pay special attention to the challenge of malnutrition. It is a multifaceted problem that requires coordinated response," said the King of Lesotho, adding, "There are huge savings to be made if countries solve malnutrition,"

Agriculture, food and nutrition sufficiency have been identified in the Agenda 2063 as building blocks to Africa's sustainable development. The AU commissioner for Social Affairs, Mustapha Sidiki Kaloko, said that AU member states will focus on food and nutrition security this year. "Governments have agreed that access to nutritious food in the right quantity is not only a human right but an imperative to realize growth," Kaloko told reporters.

African Leaders’ Renewed Commitment Against Insecurity During the AU summit which ended on Friday, African Heads of State and Government renewed their commitment towards achieving a new era of peace, stability and shared prosperity in the African Continent. Presidents, diplomats and foreign dignitaries agreed that Africa must address poverty, inequality, environmental depletion, conflicts and cross-border crimes to achieve renaissance.

Equatorial Guinea President, Obiang Nguema Mbasogo, stressed in his opening remarks that African leaders have resolved to lead the fight against deficiency, disease, illiteracy and climate change.

"A huge presence of African leaders in this summit demonstrates our collective resolve to solve our modern day challenges. Nations all over the world are searching for solutions to financial crises and climate change and Africa cannot be on the sidelines," said Obiang.

He was the host of the 23rd AU summit that focused on agriculture transformation and food security. Obiang challenged leaders to adopt radical measures that would accelerate sustainable development in Africa.

As part of the solution to Africa's under-development, Mbasogo proposed robust investments in agriculture, infrastructure and education, noting that public-private partnerships will boost agricultural transformation, infrastructure development and provision of basic services.

He challenged leaders to prioritize the fight against climate change, armed conflicts and terrorism to achieve new growth. On his part, UN Secretary-General Ban Ki-moon praised Africa's current socio-economic transformation.

He said most African nations have experienced economic growth, political stability and progress towards achieving the millennium development goals. "The United Nations is proud to be a key partner in Africa's transformation. We are committed to your goal of an integrated, prosperous and peaceful Africa driven by its own citizens and representing a dynamic force in the global arena," said Ban. The Chairperson of the African Union and President of Mauritania, Mohamed Ould Abdel Aziz reiterated the need for African countries to craft new strategies to defeat the scourges of hunger, disease and conflicts.

"We have resources that can be harnessed to realize prosperity. Countries should implement sound macroeconomic policies to trigger growth," said Abdel Aziz. "Agriculture contributes one-third of gross domestic product in many countries. It will help address poverty, unemployment and health complications," he went on.