Welcome to the Proposed AUGEIP-eBank Global Network - We starve to serve Africa and the global markets rather than serving a narrow and restricted vision which hasn't gotten the African continent nowhere. 

High inflation due to the huge African member states'  workforces has attributed the high inflation figures in the African Union member states to the huge composition of government which forces it not to live within its means.

Funds must be made available to foster local, national and regional entrepreneur develop. The cost of borrowing in commercial banks, where this option exist, are favourable for the private sector in Africa. Lacks short term loan to support entrepreneurs. The continent is seeing the capital base eaten up which makes it difficult for the African entrepreneurs to develop.

The African economy is sick and if it is to recover there is need for member states governments to cut their spending, reduce borrowing from banks to pave way for the private sector and implement a tight monetary system. 

African countries which account for most of the most underdeveloped countries in the world are being marginalized during the globalisation process and this should be changed. While we may have different views on how best we can make Africa a net beneficiary of the process, the fact that we can meet on this platform and interact is testament to that end.

High taxes kills production. In most African member states, there are pressure by government to raise funding and its key source is tax. Unless taxes are production oriented, we won't see the results. In Africa and elsewhere, the Value Added Tax at 17.5 is too high. The size of the government in most African countries is big and cannot live within its means. Tax rate in these countries is higher than is obtaining in rich nations. There is a serious policy failure in this area to address. Interest rates of about 50 per cent will not help develop these countries. Thus, AU member states governments need to address this by looking at incentives and tax reformation - 

Lapses in banking industry in African member states:

- Needless low profile and subservience of the chairmen and national directors on the banks' boards throughout the African continent.

- Lack of capacity in the Central Banks of AU member states to institute genuine competition, improvement in customer relations and monitoring their performance in these aspects of their operations.

- The failure by the social and economic development ministries in Cabinet to push through relevant ideas which the local banks should adopt and if necessary provide relevant legislation.

- The essence of any understanding of their full responsibilities by the member states' Competition  Commission (if existing at all) and the consumer protection group (if existing at all).

- The failure by the parliamentary selects committees (if existing at all) to take interest in the operations of commercial banks.

- Collusion in the banks associations (if existing at all) to adopt some practices by the members throughout the African continent.

- Information to customers very scanty from banks.

- Current Account -  All banks seem to say that there is no minimum balance on current accounts (in national currency) but one needs to earn a minimum monthly income in order to be allowed to open an account. Presumably a person who can get interest earned from say Government bonds, treasury bills, dividends, etc. and whose withdrawals will balance at the end of a given time, would have to negotiate with the bank manager. The effort to open discussions obviously would discourage such a person from attempting to open a current account.

- Cheque Clearing - Here it seems the information technology has not yet reached the banking sector as can be shown by the following from one of the bank brochure:

National accounts:

• In house cheques - 24 hours

• Within the same clearing area - 3 business days

• Between banks in provincial centres - 6 business days

•  Between provincial clearing centres - 10 business days, other banks say 21 business days.

Foreign accounts (cheque draw in):

• Banks within same area (whereas this service exists) - 6 business days

• Banks outside country - minimum 21business days

• Minimum balances - savings accounts: equivalent of at least US $ 1000.00

• There are penalties for insufficient operations of these accounts, e.g. less than so many withdrawals per month, or falling below the minimum for one day -

- The foregoing is a tiny indication of the suspicion that some collision is afoot and that there are really no concerns for the conditions in the African economy nor for the need to popularise banking. The lack of concern shows itself in the following ways:

• Long queues and waiting to cash a cheque even if not written by somebody else

• The failure to clear the cheque promptly unless either one raises dust or is brave enough to see the manager. It is admitted that there is need to prevent fraud but this occurs everywhere else in the world.

              The information technology abroad means that one can cash a cheque in London on an account in Plymouth or Aberdeen within one minute of presenting it to the cashier. The same applies in Australia, much of Europe in the euro area and the Far East.

- As for the minimum balances and operations of accounts the conclusion is that with these deposits on which no interest is paid, the banks are making a killing. We can go on to show how iniquitous tha banks are but also how many of those in the cash economy have been cut off and, effectively to them, the banking system is irrelevant.

- The permanent uncontrolled borrowing by Government from the banks though bonds, treasury bills, now taxing interest savings means that most African people will keep their money out of the banks and will pay their bills in cash - not by cheque. 

We can now examine the underlying causes:

- The banks chairmen and Directors, do not personally queue up to cash their cheques or the are afraid to raise these awkward concerns in case they lose their positions on the boards.

- In most African countries, the central Board does not have senior, experienced commercial bankers who can point out to the commercial bank managers what must be done even on bank closures, proportions to commerce and industry for sustaining the economy and customer interest maintenance and expansion.

- The Cabinet as a whole, lacks any understanding that it has collectively to prod those in banking to play their part in the entire economy, not just traders or foreign owned enterprises. 

- The Competition Commission and the consumer protection lobbies (where they operate) appear to be unaware of their prime responsibilities.

- The parliamentary selects committees (if existing at all) do not exchange with the various watchdog committees of parliament to come up with public Competition and Fair trading Acts.

- The Competition Commission instead of investigating the the activities of the Bankers Associations in  breaches of the Competition and Fair trading Acts prefers seminars and travel.

- The ministries which should have consumer interest in their portfolios include for the general part, Finance, Labour and Social Services, Community Development, Tourism and of course trade, Commerce and Industry.

In view of the above, this Proposed AU Commission in Regional and Global Economy Integration  has proposed instead new policy and strategy geared to linking Virtual Financial Services to Traditional Banking Services in Africa. The following interim and comprehensive global AUGEIP-eBank Network is proposed for implementation review by all stakeholders, AU communities and member Sates:

• eBank ChamPayCard -  for your worldwide Cash Withdraw

• eBank EcuPay Services - the revolutionary virtual payment system. With EcuPay you open a Dollar, Euro, GB Pound, Japanese Yen and over 160 other national currencies and "e-currency" worldwide.