Don’t frustrate tech industry – Dr. Asiama to Africa policy makers

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has urged African policymakers and regulators to adopt flexible approaches that support innovation rather than hinder the growth of the technology industry.

Speaking during a fireside chat at the ACI Financial Markets World Congress in Accra, Dr. Asiama said regulators must focus on managing risks associated with emerging technologies instead of attempting to suppress innovation.

“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 explained that financial technology firms were playing an increasingly important role in expanding access to financial services and improving payment systems across Africa.

He said central banks and regulators needed to engage innovators constructively to ensure that technological advancements contributed to economic growth while maintaining financial stability and consumer protection.

The Governor disclosed that the Bank of Ghana was promoting regulatory sandboxes and innovation hubs to provide controlled environments for fintech companies to test products and services under regulatory supervision.

According to him, the central bank was also considering a sub-regional sandbox framework that would allow African countries to collaborate, learn from one another and coordinate innovation efforts across borders.

Dr. Asiama noted that African central banks were increasingly working together to harmonise regulations and improve interoperability in payment systems to support trade and financial inclusion under the African Continental Free Trade Area initiative.

He said fragmented payment systems across the continent continued to make cross-border transactions expensive and inefficient, despite growing efforts to deepen regional trade.

The Governor added that the Bank of Ghana was working with AfCFTA and other stakeholders to explore 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 expressed optimism that stronger collaboration among regulators, innovators and investors would help Africa develop resilient and inclusive financial systems capable of supporting sustainable economic growth.