Ghana’s Central Bank Governor, Ernest Addison, on Friday urged the establishment of a robust digital payment infrastructure to enable seamless cross-border payments in Africa to boost intra-African trade.
Addison made this call during the one-day 2024 symposium on retail payment interoperability organized by the Africa Prosperity Network, an Africa-wide network seeking to drive the development vision of the continent.
The symposium discussed cross-border payment systems on the continent in the wake of the implementation of the African Continental Free Trade Agreement (AfCFTA).
Addison opined that such a system should ensure interoperability of digital payment systems from network to network and from country to country, seamlessly, to catapult the continent towards the realization of the digital protocols of the AfCFTA, which aim to transform intra-African trade.
The governor pointed out that cross-border interoperability would, in the long run, require cooperation, the establishment of a transparent, secure, and trusted digital trade ecosystem, and the promotion of digital inclusion for underrepresented groups and micro, small, and medium-sized enterprises in the African Union member states.
“An efficient cross-border payment interoperability system can deliver seamless payments between buyers and sellers across Africa with extensive inclusivity in expanding access to payment and financial services for the youth, vulnerable groups, and striving entrepreneurs,” he said.
Currently, Addison said Africa has made giant strides in financial technology (Fintech) development and regulation, particularly with its leadership role in the mobile money technology space.
Therefore, the concept of interoperable mobile money systems holds enormous potential for the establishment of comprehensive cross-border payment interoperability in the short and medium term, said Addison.
“Achieving cross-border interoperable mobile money systems would require harmonized regulatory frameworks, consistent technical standards, and robust infrastructure,” Addison stated.
He said strong public-private partnerships involving mobile network operators, financial institutions, fintechs, and regulators would also address technical challenges and ensure regulatory compliance.