BoG pushes for integrated African payment systems to boost trade

Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has called for integrated payment and settlement systems across Africa to support trade, deepen financial inclusion, and accelerate economic growth on the continent.

He said that although African countries had made progress in promoting regional trade, payment and settlement systems across the sub-region remained fragmented, making cross-border transactions expensive and inefficient.

“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 was speaking at a fireside chat on the future of monetary governance, digital transformation, interoperability and financial stability during the ACI Financial Markets World Congress in Accra.

He said fostering interoperability across Africa’s financial infrastructure was critical to achieving the continent’s economic integration agenda under the African Continental Free Trade Area (AfCFTA).

The Governor said the Bank of Ghana was working with AfCFTA and other stakeholders to explore the use of stablecoins and other digital innovations to address cross-border payment challenges.

“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 noted that African central banks were increasingly collaborating to harmonise regulations, improve payment systems 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, innovators and investors across the continent to discuss innovation and financial sector development.

The Governor stressed that innovation must go hand in hand with financial 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 said the Bank of Ghana was promoting regulatory sandboxes and innovation hubs to provide controlled environments for financial technology firms to develop solutions while ensuring risks were properly managed.

He said the central bank was also considering a sub-regional sandbox framework to enable African countries to learn together and coordinate innovation efforts.

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