The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiamah, has called for urgent reforms in Africa’s cross-border payment and digital finance systems, describing them as critical infrastructure needed to unlock the full potential of the African Continental Free Trade Area (AfCFTA).
Delivering a keynote address at the African Prosperity Dialogue (APD) 2026 in Accra, read on his behalf by the Second Deputy Governor of the Bank of Ghana, Mrs. Matilda Asante-Asiedu, Dr. Asiamah said trade agreements alone are not enough to drive intra-African trade without efficient, affordable and reliable payment systems.
“Trade agreements alone do not create trade. Payments make trade possible,” he said, stressing that payment systems are central to monetary stability, financial integration and long-term economic transformation on the continent.
Dr. Asiamah noted that despite Africa’s vast economic potential, cross-border payments on the continent remain costly and slow. Transaction costs for intra-African payments often range between 7 and 10 percent, significantly higher than the global average of about 3 percent, while settlement periods can take days or even weeks.
He added that more than 80 percent of intra-African payments are routed through correspondent banks outside the continent, largely in foreign currencies, costing Africa an estimated US$5.3 billion annually and exposing economies to foreign exchange risks.
The BoG Governor said AfCFTA, which brings together a market of over 1.5 billion people with a combined GDP of approximately US$2.8 trillion, presents a major opportunity to transform Africa’s trade landscape. However, he cautioned that the expected growth in intra-African trade would only materialise if payment systems are aligned with the continent’s trade ambitions.
He highlighted Africa’s leadership in digital finance, noting that the continent hosts more than half of the world’s mobile money accounts. Ghana, he said, has made significant progress by building a modern, interoperable and resilient payment ecosystem that supports real-time payments across banks, mobile money operators and fintechs.
Dr. Asiamah reaffirmed Ghana’s commitment to regional payment integration through its participation in the Pan-African Payment and Settlement System (PAPSS), which enables cross-border payments in local African currencies, shortens settlement chains and reduces transaction costs.
“Our vision is clear,” he said. “African trade must increasingly be settled in African currencies, through African infrastructure, and supported by African institutions.”
He outlined several initiatives being pursued by the Bank of Ghana, including fintech passporting in collaboration with Rwanda to enable cross-border licensing, next-generation digital public infrastructure to support interoperability and settlement models, and the recently passed Virtual Asset Service Providers Act, aimed at regulating emerging digital payment channels while ensuring consumer protection.
The BoG Governor stressed that efficient payment systems are essential for inclusive growth, noting that small and medium-sized enterprises account for over 90 percent of African businesses, women dominate informal cross-border trade, and young people are leading digital entrepreneurship across the continent.
High transaction costs and payment inefficiencies, he said, disproportionately affect these groups and limit their ability to scale and compete.
Dr. Asiamah urged African policymakers and regulators to prioritise regulatory harmonisation, digital public infrastructure development, cross-border mobile money expansion, cybersecurity resilience and broader digital onboarding for SMEs.
He concluded by calling for collective action to ensure that Africa’s single market becomes a reality, not just an aspiration.
“Africa’s single market will be realised when value moves as seamlessly as ideas, entrepreneurs transact across borders without friction, and innovation is supported by trust and strong institutions,” he said.
Source: www.kumasimail.com
