Dr. Ernest Addison, governor of the Bank of Ghana (BoG), has stated that Ghana is currently collaborating with the Monetary Authority of Singapore on a project called Business San Borders that aims to improve the prospects for international trade for small and medium-sized enterprises (SMEs) in each nation by implementing digital trade platforms for market discovery.
According to Dr. Addison, several digital initiatives have been launched in Ghana to advance the interests of corporations and SMEs.
Dr. Addison stated 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" on Sunday, June 19, at the 30th AFREXIMBANK General Meeting in Accra. This makes cross-border payment and settlement processes inside Africa possible. We are removing the obstacles and inefficiencies connected to conventional payment processes by utilizing the PAPSS platform. By making transactions quicker, safer, and more affordable, this fosters regional trade, investment, and commerce. Our local financial institutions are now fully able to take use of the prospects provided by this ground-breaking solution thanks to their integration into the PAPSS platform.
The financial service providers are brought on board by the component trust corridor to provide mutual access and improve information to permit non-collateralized lending based on borrower desire to pay. This solution has been accepted for testing in the regulatory sandbox of the Bank of Ghana. I am adamant that the African Continental Free Trade Area (AfCFTA) concept will allow for the replication of the success of this audacious approach in other nations.
He continued, "But, the active participation and collaboration of all financial institutions and private firms are essential to the development of these digital platforms and ecosystems. We fervently urge all parties involved to support these initiatives and make them beneficial to their individual enterprises. Financial institutions can increase their reach, improve efficiency, and open up new market opportunities by utilizing these platforms.
On the other side, private companies can reach a larger client base, take use of the immense potential of intra-African commerce, and create cooperative relationships. We can build a healthy digital ecosystem together that stimulates investment, fuels economic progress, and advances Africa.
He continued by saying that the Bank of Ghana is committed to promoting digitalization and offering a supportive regulatory environment for Fintechs and financial institutions to take advantage of trade, investment, and business possibilities in Africa by utilizing digital platforms and ecosystems.
"Our participation in the MANSA Platform and connection with the PAPSS Platform are tangible efforts that seek to improve transparency, expedite procedures, and enable smooth transactions.
"We extend an open invitation to all private companies and financial institutions to actively take part in these projects and capitalize on the revolutionary potential of digitization. We can create a thriving future for Africa by working together.
"A multifaceted strategy is needed to maximize Africa's trade, investment, and commercial prospects through digital platforms and ecosystems. We can put Africa at the forefront of the digital revolution by improving digital infrastructure, encouraging entrepreneurship, establishing an enabling regulatory framework, boosting the development of digital skills, and utilizing regional integration projects.
For the benefit of our continent and its people, he urged, "let us grab this opportunity to collaborate, develop, and embrace the revolutionary power of technology."
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