Accra: The Bank of Ghana Governor, Dr. Johnson Pandit Asiama, has emphasized the need for a more integrated payment system across Africa, highlighting the challenges fragmented cross-border settlement infrastructure poses to regional trade and financial market development.
According to Ghana Web, Dr. Asiama addressed the ACI Financial Market Association global conference in Accra, underscoring African central banks' growing focus on interoperability, digital payments infrastructure, and coordinated regulation amid rapid technological transformations in financial systems. He pointed out that payment and settlement systems have not kept pace with broader trade integration efforts, leading to high transaction costs and inefficiencies in moving funds within Africa.
Dr. Asiama noted the stark contrast in transaction costs, citing how it is often cheaper to send money overseas than within the sub-region. He stressed the urgent need for initiatives to support regional trade and improve cross-border transactions, mentioning the Bank of Ghana's involvement in projects related to the Pan-African Payment and Settlement System (PAPSS) and exploring stablecoin innovations to address payment bottlenecks.
The Governor revealed that the central bank is collaborating with regional institutions to create sandbox environments for testing emerging payment technologies under controlled conditions, facilitating safer and wider deployment. This initiative aligns with the broader efforts of African policymakers to operationalize the African Continental Free Trade Area through efficient settlement systems that support growing intra-African commerce. Despite advancements in digital finance, cross-border transfers within Africa remain costly, as highlighted by various industry studies.
Dr. Asiama elaborated on the evolving role of central banks, which now extends beyond traditional monetary policy to include areas like artificial intelligence, data governance, fintech supervision, and cybersecurity. The Bank of Ghana has established new departments focused on these areas and is considering a regulatory framework specifically for fintech supervision.
Reflecting on Ghana's earlier regulatory gaps, Dr. Asiama acknowledged the country's delay in fintech regulation but emphasized the central bank's strategy to regulate risks rather than technologies themselves. He advocated for a balance between fostering innovation and maintaining financial stability, a principle that guides Ghana's regulatory approach.
In addition to interoperability, Dr. Asiama highlighted the importance of strong digital public infrastructure, broader financial inclusion, and enhanced cybersecurity resilience across African financial systems. With limited bank branches in some Ghanaian regions, digital finance becomes critical for expanding financial services access.
He concluded by stressing the need for maintaining institutional credibility and trust as financial systems undergo digitization, noting the central bank's increased consultations with financial institutions, investors, and market operators to enhance coordination and policy effectiveness.