African cross-border payments remain costly – BoG Governor

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, says fragmented payment systems across Africa continue to make cross-border transactions expensive and inefficient.

Speaking at a fireside chat during the ACI Financial Markets World Congress in Accra, Dr. Asiama said it was often cheaper to send money outside Africa than within the sub-region, despite ongoing efforts to promote regional trade and integration.

“Someone says it is cheaper, for example, to send money across the oceans than it is to send money to another country within the sub-region,” he said.

Dr. Asiama noted that payment and settlement systems across Africa remained largely fragmented, creating barriers for businesses and individuals engaging in cross-border trade under the African Continental Free Trade Area framework.

He stressed that building interoperable payment systems was essential to deepening regional trade, improving financial inclusion and supporting economic growth across the continent.

The Governor disclosed that the Bank of Ghana was collaborating with AfCFTA and other stakeholders to explore stablecoins and digital financial innovations aimed at reducing the cost and complexity of cross-border payments.

“And so we are working on some of those fronts within a sandbox environment to start with, so as to be able to establish those platforms to support greater integration across the sub-region,” he said.

Dr. Asiama explained that African central banks were increasingly working together to harmonise regulations, improve payment infrastructure and share experiences on emerging financial technologies.

He said the Bank of Ghana had also supported initiatives such as the 3i Africa Summit, which brought together central bank governors, investors and innovators to discuss financial sector development and innovation.

The Governor maintained that innovation in the financial sector must be accompanied by strong safeguards to ensure stability and consumer protection.

“Do not regulate the technology, but regulate the risk. Work with them, understand what it is about, so that you do not frustrate, you rather facilitate in your approach,” he said.

Dr. Asiama added that the central bank was promoting regulatory sandboxes and innovation hubs to help fintech firms test solutions in controlled environments while ensuring risks were effectively managed.

He expressed optimism that stronger collaboration among regulators, innovators and investors would help Africa build resilient financial systems capable of supporting sustainable economic growth.