Africa and the Caribbean are exploring the development of a digital currency to deepen trade ties between the two regions. The proposed currency, which both African and CARICOM countries could adopt, is aimed at facilitating smoother and more inclusive trade among member States.
This was disclosed during the Presidential Session at the Afreximbank Annual Meetings in Abuja, themed “Can Africa and the Caribbean Rise in a Fractured World? The Strategic Role of Afreximbank.” The session featured Heads of State and senior officials, including Prime Ministers from CARICOM, with moderation by Emmanuel Akyeampong, Ellen Gurney, Professor of History and Professor of African and African American Studies.
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Responding to a question on what currency should be used for trade in the future, Philip Brave Davis, Prime Minister of The Bahamas noted that current global uncertainties and the weakening of multilateral systems call for new solutions. He pointed out that many Caribbean currencies, such as the Bahamian dollar, are pegged solely to the US dollar, a structure that needs rethinking.
“For us, it’s time to consider pegging our currencies to a basket of currencies. But more importantly, we should seriously consider developing a digital currency that African and CARICOM countries can adopt to facilitate trade,” he said.
The Prime Minister added that the Caribbean is already piloting a system similar to Africa’s Pan-African Payment and Settlement System (PAPSS), which is designed to ease cross-border trade payments. He suggested that a shared virtual currency could be a natural evolution of this effort, offering a unified payment solution for both regions.
Echoing the sentiment, Dickon Mitchell, Prime Minister of Grenada noted the complexity caused by currency fragmentation. “Africa has about 54 different currencies, and the Caribbean has around eight. If we are serious about the future of trade, we need to consolidate our currencies,” he said.
He added that the goal should be to eventually develop an African currency that includes the diaspora. “This is not just about trade, it’s also about the movement of people. With a unified currency, we can reduce dependence on external systems and facilitate greater intra-African and Caribbean engagement.”
Also speaking, Côte d’Ivoire’s Minister of Economy and Finance, Moussa Sanogo, emphasised the economic importance of monetary cohesion. He said that Africa’s evolving commercial landscape cannot thrive without addressing the fragmentation of its currencies.
“There is a clear disconnect between our economic integration efforts and our currency structures,” he said. “A unified monetary system would strengthen Africa’s bargaining power, boost trade, and support strategic sectors like energy and agriculture.”
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Sanogo stressed that such a shift would enhance productivity, improve the quality of African goods, and reduce economic disparities across the continent. “Ultimately, currency unity is essential for transforming Africa’s competitiveness and securing its place in the global economy,” he added.
The discussion signals growing interest in innovative currency solutions as Africa and the Caribbean seek to deepen economic cooperation and reduce reliance on foreign financial systems.
