Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said that Ghana is currently working with the Monetary Authority of Singapore on a Business san Borders project aimed at boosting the international trade prospects of small and Medium Scale Enterprises (SMEs) of the respective countries through the implementation of digital trade platforms for market discovery.
Dr Addison indicated that a number of digital initiatives had been introduced in Ghana to advance the interest of businesses and SMEs.
Speaking at the 30 AFREXIMBANK General Meeting in Accra on Sunday, June 19, Dr Addison said that “we have integrated the Pan-African Payment and Settlement System (PAPSS) platform and appointed the Ghana Interbank Payment and Settlement Systems Limited (GHIPSS) as the integration entity for locally regulated institutions. This allows for seamless cross-border payment and settlement transactions within Africa.
By leveraging the PAPSS platform, we are eliminating the barriers and inefficiencies associated with traditional payment systems. This promotes regional trade, investment, and commerce by facilitating faster, more secure, and cost-effective transactions. The integration of our local financial institutions into the PAPSS platform ensures that they can fully benefit from the opportunities presented by this innovative solution.
“The component trust corridor brings on board financial service providers to build mutual access to enhance information to facilitate non-collateralised lending based on borrower intent to pay. This solution has been admitted to the Bank of Ghana’s regulatory sandbox for testing. I am of the firm conviction that the success of this bold solution could be replicated in other countries under the African Continental Free Trade Area (AfCFTA) project.”
He added “The success of these digital platforms and ecosystems, however, depends on the active participation and collaboration of all financial institutions and private businesses. We strongly encourage all stakeholders to embrace these initiatives and make them work for their respective businesses. By joining these platforms and leveraging digital technologies, financial institutions can expand their reach, enhance efficiency, and unlock new market opportunities.
“Private businesses, on the other hand, can tap into the vast potential of intra-African trade, access a wider customer base, and foster mutually beneficial partnerships. Together, we can create a thriving digital ecosystem that drives economic growth, boosts investment, and propels Africa forward.”
The Bank of Ghana, he added, is committed to supporting digitalization and providing an enabling regulatory environment for Fintechs and financial institutions to unlock Africa’s trade, investment, and commerce opportunities leveraging digital platforms and ecosystems.
“Our involvement in the MANSA Platform and integration with the PAPSS platform are concrete contributions that aim to streamline processes, enhance transparency, and facilitate seamless transactions.
“We invite all financial institutions and private businesses to actively participate in these initiatives and harness the transformative power of digitalization. Together, we can shape a prosperous future for Africa.
“Unlocking Africa’s trade, investment, and commerce opportunities through digital platforms and ecosystems requires a multi-faceted approach. By enhancing digital infrastructure, fostering entrepreneurship, creating an enabling regulatory environment, promoting digital skills development, and leveraging regional integration initiatives, we can position Africa at the forefront of the digital revolution.
“Let us seize this moment to collaborate, innovate, and embrace the transformative power of technology for the benefit of our continent and its people,” he said.
Source: 3News