The African Union's decision to recognise the continent's financial institutions will spur intra-African trade, President William Ruto has said.
Ruto said the move is one of the AU's ongoing efforts to promote home-grown institutions and push for support for these bodies to thrive.
"We have also decided as African Union Heads of State to buy more shares in these institutions," Ruto said.
He spoke on Thursday when he addressed the African heads of missions accredited to Addis Ababa, Ethiopia.
Ruto, who serves as the Champion of the AU Institutional Reforms, said that the continent needs to support these institutions because they support the economies.
The AU's recognition of continental financial institutions such as the African Development Bank (ADB), Trade Development Bank, and Ecobank is similar to the recognition African countries have given international lenders such as the World Bank and the International Monetary Fund (IMF).
Ruto also cited the Pan-African Payment and Settlement System developed by the African Export-Import Bank as a good example of a local solution to a global problem.
The payment system allows African businessmen to conduct cross-border trade using their countries' currencies, saving them exchange rate losses occasioned by doing business in foreign currencies.
Ruto called on the African Union to rethink the continent's peace and security matters to give it more say in Africa’s stability.
"The days of 20, 000 AU peacekeeping force are slowly fading away. We need to take charge of our peace support mechanism in our continent," he said.
Similarly, he said the reforms at the Pan-African Parliament should be aimed at giving it the mandate to oversee the African Union Commission and approve its budget.
The President called for the strengthening of the African Court of Justice to play a more active role in solving legal disputes in the continent and arbitrating trade matters among Member States.
He said he was encouraged by the scope and depth of the proposals made by the African ambassadors at the AU and other stakeholders.
Among those present at the meeting were former Prime Minister Raila Odinga, Kenya's candidate for the position of Chairman of the African Union Commission.
