Secure Payment Systems Key To Africa’s Trade Integration – BoG Second Deputy Governor

Secure Payment Systems Key To Africa’s Trade Integration – BoG Second Deputy Governor

Second Deputy Governor of the Bank of Ghana (BoG), Mrs Matilda Asante-Asiedu, has stressed that the success of the African Continental Free Trade Area (AfCFTA) depends largely on the availability of secure, affordable and reliable payment systems across the continent.

According to her, trade agreements alone do not guarantee increased trade, noting that efficient payment systems are what make trade possible. Without reliable means of transferring value, she said, the vision of a truly integrated African market cannot be realised.

Mrs Asante-Asiedu made these remarks at the African Property Dialogue held in Accra last week. She described payment systems as strategic trade infrastructure that are critical to monetary stability, financial integration and long-term economic transformation in Africa.

She observed that despite Africa’s vast economic potential, cross-border payments on the continent remain costly, slow and fragmented. Transaction costs for intra-African payments, she noted, range between seven and 10 per cent, far above the global average of about three per cent. In addition, settlement periods can take several days or even weeks.

She further revealed that more than 80 per cent of intra-African payments are routed through correspondent banks outside the continent, mainly in foreign currencies, costing Africa an estimated US$5.3 billion annually and exposing economies to foreign exchange risks. However, she said these challenges also present significant opportunities for reform and innovation.

Highlighting the potential of AfCFTA, Mrs Asante-Asiedu stated that the agreement brings together a market of over 1.5 billion people with a combined GDP of about US$2.8 trillion. She added that intra-African trade could double in the medium term if the agreement is fully implemented, but only if payment systems are aligned with Africa’s trade ambitions.

She pointed out that Africa has already shown leadership in digital finance, with more than half of the world’s mobile money accounts on the continent. Ghana, she said, is a strong example, where digital finance has become essential for households, microenterprises, women and underserved communities.

However, she noted that much of Africa’s digital finance progress remains domestic. To fully support Africa’s single market, she said financial inclusion must extend across borders.

Mrs Asante-Asiedu explained that Ghana has invested deliberately in building a modern, interoperable and resilient payment ecosystem, enabling real-time payments across banks, mobile money operators and fintechs.

These achievements, she added, position Ghana well for regional integration.