Second Deputy Governor of the Bank of Ghana (BoG), Matilda Asante-Asiedu, has said that as Africa advances implementation of the African Continental Free Trade Area, one truth has become increasingly clear: Trade agreements alone do not create trade.
She said payments make trade possible.
Without secure, affordable, and reliable means of transferring value, the promise of a truly integrated African market cannot be achieved, she said.
Speaking during the African Property Dialogue event in Accra last week, she said that payment systems are strategic trade infrastructure, essential for monetary stability, financial integration, and long-term economic transformation across our continent.
“Cross-Border Payments in Africa: Challenges and Opportunities Despite Africa’s enormous economic potential, cross-border payments remain expensive, slow, and fragmented. Transaction costs for intra-African payments often exceed 7 to 10 percent, compared with a global average of about 3 percent.
“Settlement times can extend from days to weeks. More than 80 percent of intra-African payments are routed through correspondent banks outside the continent, largely in foreign currencies. This costs Africa an estimated US$5.3 billion annually and exposes our economies to foreign exchange risks. Yet amidst these challenges lie tremendous opportunities,” Mrs Asante-Asiedu said.
She added that AfCFTA brings together a market of over 1.5 billion people and a combined GDP of approximately US$2.8 trillion. If fully implemented, intra-African trade could double in the medium term.
“But this growth will only materialise if our payment systems match Africa’s trade ambitions. Thankfully, Africa has already demonstrated global leadership in digital finance innovation.
“With more than half of the world’s mobile money accounts, the continent has shown how technology can expand financial inclusion and transform livelihoods and Ghana stands as a notable example. Digital finance has become a lifeline for households, microenterprises, women, and underserved communities. However, much of this progress remains domestic rather than continental. For digital finance to fully empower Africa’s single market, inclusion must extend across borders – not only within them.
“In Ghana, we have deliberately built a modern, interoperable, and resilient payment ecosystem. Investments in digital public infrastructure have enabled interoperability across banks, mobile money operators, and fintech institutions, supporting real-time payments across our economy. These domestic successes provide a strong platform for regional integration. Ghana is an active participant in the Pan-African Payment and Settlement System – PAPSS, which enables cross-border payments in local African currencies, shortens settlement chains, and lowers costs for African traders,” she said.
