The Bank of Ghana (BoG) is strongly pushing for unified payment and settlement systems across all of Africa. Governor Dr. Johnson Pandit Asiama stated that this integration is vital to boost trade and accelerate economic growth on the continent. He highlighted that current systems across African regions are disconnected. This makes sending money between African countries more expensive than sending it across oceans.
Dr. Asiama made these remarks at the ACI Financial Markets World Congress in Accra. He explained that these fragmented payment systems create significant barriers for businesses. They increase costs and slow down transactions. This inefficiency directly impacts the potential for greater economic integration. Specifically, it hinders the goals of the African Continental Free Trade Area (AfCFTA).
This initiative by the Bank of Ghana fits into a larger strategy to deepen Africa's economic integration. The AfCFTA aims to create a single market for goods and services. However, the lack of seamless cross-border payment infrastructure remains a major bottleneck. Historical data on trade flows within Africa shows that intra-African trade is significantly lower than trade with other continents. This is partly due to high transaction costs and inefficiencies. Past efforts to streamline payments have shown some progress, but a comprehensive, integrated solution is still needed.
“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,” Dr. Asiama noted. The Bank of Ghana is actively working with the AfCFTA Secretariat and other bodies. They are exploring new digital solutions. This includes investigating the use of stablecoins. These are digital currencies designed to maintain a stable value. The goal is to find practical ways to overcome current cross-border payment challenges. These explorations are happening in a controlled environment called a sandbox.
The Bank of Ghana is also promoting regulatory sandboxes. These are safe spaces where financial technology (fintech) firms can test new ideas. This allows for innovation while ensuring that risks are manageable and consumer protection is maintained. Dr. Asiama emphasized that innovation must lead to financial stability. The central bank's approach is to regulate the risks associated with new technologies, not the technologies themselves. This facilitates innovation rather than stifling it. A sub-regional sandbox framework is also being considered. This would allow African countries to share knowledge and coordinate their innovation efforts more effectively. Stronger cooperation among regulators, innovators, and investors is seen as key. It will help build robust and inclusive financial systems. These systems are essential for supporting sustainable economic growth across the continent.