Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said that Africa has made giant strides in FinTech development and regulation, particularly with its leadership role in the mobile money technology space. Therefore, he said, the concept of interoperable mobile money systems holds an enormous potential towards the establishment of comprehensive cross-border payment
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Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said that Africa has made giant strides in FinTech development and regulation, particularly with its leadership role in the mobile money technology space.
Therefore, he said, the concept of interoperable mobile money systems holds an enormous potential towards the establishment of comprehensive cross-border payment interoperability in the short-medium term.
Dr Addison explained that an efficient cross-border payment interoperability system can deliver seamless payments between buyers and sellers across African countries, as well as provide extensive inclusivity in expanding access to payment and financial services for the youth, vulnerable groups, and striving entrepreneurs.
This notwithstanding, he said, achieving cross-border interoperable mobile money systems would require harmonised regulatory frameworks, consistent technical standards, and robust infrastructure.
In addition, Dr Addison said, strong public private partnerships, involving mobile network operators, financial institutions, FinTechs, and regulators would address technical challenges and ensure regulatory compliance.
Other strategies that would ensure the adoption and long-term system reliability of cross-border payment interoperability include customer education and trust, scalability, and system sustainability, as well as inclusive access, which is essential for all segments of society, including rural and underserved populations.
“Policy coordination and governance are also essential for smooth operation and compliance in a multi-country environment. By implementing these strategies, African countries can facilitate efficient cross-border transactions and promote financial inclusion to stimulate economic growth.
“On a more positive note, the foundational elements necessary to implement this idea of cross-border payment interoperability are partly in place in some African countries. These include regulatory sandbox programmes, progressive regulatory frameworks, and a dynamic FinTech sector, eager for growth opportunities. However, what may be lacking is
collaboration among stakeholders,” Dr Addison said during the Africa Prosperity Network (APN) 2024 symposium on retail payment interoperability, in Accra on Friday, July 5.
He further stated that effective collaboration between regulators, financial institutions, mobile money operators, FinTech innovators, and other stakeholders is crucial to address technical challenges, ensure regulatory compliance, build trust, and drive the scalability and sustainability of cross-border mobile money and other interoperability initiatives.
By fostering a collaborative ecosystem, Africa can harness its FinTech advancements to unleash the full potential of interoperable mobile money systems, benefiting both individuals and countries across the continent.
“On this note, I would like to extend my sincere thanks to the organisers of this symposium for their dedication towards the launch of this initiative. Your commitment to foster collaboration and innovation in this crucial area is commendable.
“Permit me to also add that the initiative to scale up cross border payment interoperability aligns with the broader financial sector digitisation and inclusion agenda of the Bank of Ghana. It is therefore our hope that other central banks on the continent will join in and contribute to its realisation,” Dr Addison said.
