The 23rd Summit of the African Union (AU) Summit in Malabo has adopted the Statute of the African Monetary Fund (AMF), a pan-African financial institution with an initial capital of 22.64 billion dollars and whose mission promote the economic development of the continent.
The fund, whose implementation is provided by the Constitutive Act of the AU adopted in 2000 in Sirte, Libya, aims to contribute to economic stability and the management of financial crises in Africa, promoting growth macroeconomic and development of intra-regional trade.
According to the Commissioner of the African Union for Economic Affairs, Anthony Maruping, the FMA was created to support the macro-economic issues on the continent.
The process of implementation of the FMA was delayed by the attachment of the five largest contributors to the AU (Libya, Egypt, Algeria, Nigeria and South Africa) to a veto on capital management and operation of the institution.
A consensus was finally reached at the summit in Malabo for a permanent position as a director is assigned to each participating country to more than 3.5% stake in the FMA. The granting of a veto major contributors was however rejected.
The capital of the fund will be mobilized from African states based on several criteria, including the size of their economies and currency reserves.
South Africa should be the biggest contributor to the fund’s capital, which will be based in Yaoundé, Cameroon, with 8.05% share, which represents a contribution of nearly $ 1 billion, followed by Nigeria (7.94%, or $ 899 million), Egypt (6.12% / $ 693 million) and Algeria (4.59% / $ 520 million).