GABORONE, Botswana, CMC -Bahamas Prime Minister Phillip Davis has unveiled a complete blueprint to strengthen monetary ties between Africa and the Caribbean, heralding the initiative as a brand new period of financial partnership and innovation.
Addressing an viewers throughout his official go to to the Financial institution of Botswana, Prime Minister Davis, who’s on an official go to to the African nation till Friday, mentioned, “As we stand on the shoulders of our ancestors, we bear in mind their journey from the chains of merciless slavery to the builders of independence with nothing however their naked fingers and unbreakable spirits.
“Our historical past is not only a narrative of survival; it’s a testomony to resilience, ingenuity, and a dedication to self-determination. Our ancestors, confronted with the brutality of oppression, selected to battle, to hope, and to dream of a day when their descendants would stroll freely, masters of their future.
“As we speak, the descendants of these courageous souls inherit greater than their goals; we inherit their name to motion. In a world surroundings that continues to evolve, our areas, Africa and the Caribbean, stand united, not simply in shared historical past, however in a shared mission to leverage our collective abilities, sources, and brotherhood. We discover ourselves at a vital juncture the place our previous’s legacy meets our future’s potential.”
Davis mentioned that the journey from being enslaved peoples to “turning into architects of our future is marked by battles fought not simply on the bodily entrance but additionally inside the realms of financial and monetary programs.”
He mentioned that these programs have, too typically, been designed to maintain a stranglehold on growing nations, “trying to dictate our financial destiny from the ivory towers through which they sit.
“Our response to this problem just isn’t merely to withstand however to innovate and collaborate, making a blueprint for a future the place Africa and the Caribbean harness their collective financial energy to dismantle obstacles and construct bridges.”
Prime Minister Davis mentioned {that a} clear instance of the power and resilience of the 2 areas will be seen within the latest developments on the United Nations regarding worldwide tax issues.
He mentioned The Bahamas, alongside different African nations, performed a supportive function in a pivotal decision that “marks not the top of our struggles however a major victory within the ongoing battle for equitable international tax governance.
“This decision, championed by African nations and supported by 125 nations, primarily low or middle-income nations, alerts a shift in the direction of a extra inclusive method to worldwide tax cooperation. Nonetheless, it’s essential to grasp that whereas this victory is important, it’s not an endpoint however a milestone in our bigger journey in the direction of equity and fairness within the international monetary programs.”
He mentioned the decision adopted on the UN would give the UN a extra vital function in establishing a conference on worldwide tax cooperation.
“This transfer immediately challenges the long-standing dominance of the OECD (Organisation for Financial Cooperation and Growth), which has traditionally led international tax negotiations. “
Prime Minister Davis mentioned growing nations’ frustration with the OECD-coordinated negotiations stemmed from the belief that the landmark deal geared toward curbing company tax avoidance would profit richer nations disproportionately.
“The African Union’s endorsement of the decision as a step in the direction of a totally inclusive course of on the UN for worldwide tax agenda is a testomony to International South nations’ collective energy and willpower.
“But, as we have fun this achievement, we should additionally put together for the challenges forward. The creation of a brand new UN tax conference and the institution of a world tax physique will face opposition, as evidenced by the stance of most developed nations in opposition to the decision.”
He mentioned that these nations, together with EU member states, the US, UK, Japan, and Korea, have expressed considerations {that a} new conference may duplicate present requirements and doubtlessly reopen negotiations on already settled issues.
Davis mentioned that the Bahamas and the broader African and Caribbean areas should stay vigilant and proactive on this context.
“We should leverage this second to push for the inclusion of a Multidimensional Vulnerability Index within the international monetary system. We acknowledge our nation’s distinctive challenges, notably local weather change and pure disasters.
“Our efforts ought to give attention to innovating and collaborating round international financial institution programs and guidelines designed to stifle the expansion of growing nations, the place entry to funding is usually not adequately measured by threat, together with these posed by local weather change.”
He mentioned the trail ahead requires African and Caribbean nations to construct on this victory by partaking within the upcoming intergovernmental discussions with a unified and bold agenda.
“It’s important that we, alongside our African counterparts and different growing nations, proceed to say our proper to take part absolutely in shaping international tax guidelines that impression our improvement and prosperity.
“This second in historical past, the place growing nations have efficiently advocated for a better say in worldwide tax issues, illustrates the potential of our collective efforts. Nonetheless, it’s just the start.”
Davis mentioned the true work lies in guaranteeing that the ideas of fairness, equity, and inclusivity underpin the brand new international tax system.
“As we transfer ahead, allow us to stay dedicated to the spirit of collaboration and innovation, drawing power from our shared historical past and the information that collectively, we will construct a extra simply and equitable world for all our individuals.”
Prime Minister Davis mentioned within the collective journey in the direction of forging deeper financial ties between Africa and the Caribbean, “we’re introduced with an unprecedented alternative to innovate, leverage our strengths, and redefine the way forward for banking in our areas.
“As we speak, I invite you to think about a strategic imaginative and prescient that encapsulates this ambition: a complete Blueprint for Collaboration that highlights the inherent strengths of The Bahamas as a pacesetter within the banking trade and units a course for transformative cooperation between our areas.”
He mentioned this Blueprint for Collaboration encompasses vital initiatives to unite the banking programs, improve monetary inclusivity, and catalyze financial progress throughout Africa and the Caribbean.
“This strategic plan is anchored in our shared want for prosperity and our dedication to overcoming the challenges of distance and disparate regulatory environments,” he mentioned, including, “Establishing a Joint Monetary Job Pressure will be the cornerstone of our blueprint.
“This collaborative physique will harness the experience of banking and finance leaders, policymakers, and stakeholders from each areas. Tasked with figuring out and dismantling obstacles to banking integration, this process drive symbolizes our collective will to forge a unified path ahead.”
Prime Minister Davis mentioned Africa and the Caribbean can even harmonize their regulatory frameworks to deal with a vital hurdle within the journey.
“By aligning our anti-money laundering (AML) requirements, counter-financing of terrorism (CFT) insurance policies, and digital forex rules, we create a seamless surroundings conducive to cross-regional banking operations. With its strong regulatory panorama exemplified by the DARE Act, the Bahamas is a pioneer on this endeavor, guiding our efforts towards regulatory excellence and stability.
“Moreover, the promotion of monetary inclusion and digital banking leverages the ability of know-how to erase boundaries and open doorways. Impressed by The Bahamas’ pioneering launch of the Sand Greenback, the world’s first central financial institution digital forex, this aspect of the blueprint can envision a future the place digital banking platforms prolong monetary providers to each nook of our areas, guaranteeing that no citizen is left behind.”
Davis mentioned facilitating commerce and funding by streamlined banking procedures and devoted monetary devices can bolster financial exchanges between Africa and the Caribbean.
He mentioned by specializing in sectors of mutual curiosity like tourism, agriculture, renewable power, and know-how, Africa and the Caribbean can unlock new avenues for progress and collaboration.
He mentioned the important thing to this blueprint is growing human capital, which underscores the idea that our biggest asset is individuals. Davis mentioned joint academic initiatives and coaching applications would equip banking professionals with cutting-edge abilities in fintech, cybersecurity, and regulatory compliance, guaranteeing our monetary sector is strong and safe but additionally modern and adaptive.
He mentioned making a bilateral cost system or exploring the event of a shared digital forex represents a daring step in the direction of monetary sovereignty and integration. Such an initiative will facilitate smoother commerce and funding, cut back our reliance on exterior currencies, and strengthen our financial bonds.
Prime Minister Davis mentioned that his nation stands able to leverage its management in banking and finance as a catalyst for “this grand imaginative and prescient.
“Our successes with the Sand Greenback and the DARE Act are usually not simply nationwide achievements however proof of what’s attainable when innovation meets willpower. As I invite you to think about this Blueprint for Collaboration, allow us to see it as a problem to ourselves to push the boundaries, innovate, and construct a shared financial future that displays our widespread values and aspirations.
“Collectively, Africa and the Caribbean can embark on this transformative journey pushed by unity, innovation, and mutual respect. Let this blueprint be our information as we attempt to unlock the total potential of our areas, forging a path in the direction of prosperity that shall be remembered for generations to return.”
Prime Minister Davis mentioned the areas are nicely positioned to embark on this journey, particularly with the welcomed presence of the African Export-Import Financial institution (Afreximbank), which is about to host a serious assembly this summer season in The Bahamas. T
“This occasion marks a pivotal second in our collaborative efforts, catalyzing the initiatives we envision right now,” Prime Minister Davis mentioned, including, “As we stand on the point of this transformative partnership, a query looms giant earlier than us, a query that beckons us to look past the horizon, to see previous the huge expanses of ocean that lie between our shores.
“Will we enable water separation to get in our means, or will we see these waters not as obstacles however as bridges ready to be crossed?”
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