The Bank of Ghana has warned that Africa’s prospects for economic integration under the African Continental Free Trade Area (AfCFTA) are at risk without urgent reforms to cross-border payment systems.
Speaking at the Africa Prosperity Dialogue on Thursday on behalf of Governor Johnson Pandit Asiama, Second Deputy Governor Matilda Asante-Asiedu said trade agreements alone cannot unlock continental commerce without efficient payment infrastructure.
Asante-Asiedu stated that transaction costs for payments between African countries range from 7 to 10 percent, more than double the global average of approximately 3 percent. Settlement times frequently extend to days or weeks, and over 80 percent of cross-border payments are processed through correspondent banks outside Africa, costing the continent an estimated $5.3 billion annually.
The AfCFTA currently brings together a market of 1.5 billion people with a combined gross domestic product (GDP) of roughly $2.8 trillion. Asante-Asiedu emphasised that payment systems must be treated as strategic infrastructure critical to the continent’s economic transformation.
The deputy governor highlighted that small businesses, women traders, and young entrepreneurs bear the heaviest burden from inefficient payment channels. These groups form the backbone of Africa’s informal and digital economies, and removing payment barriers would strengthen their competitiveness and expand opportunity across the region.
Ghana has built domestic digital payment infrastructure to support real-time transfers across banks, mobile money operators, and fintech platforms. The country is also a participant in the Pan-African Payment and Settlement System (PAPSS), which enables settlements in local currencies, shortens payment chains, and reduces costs.
Asante-Asiedu said African trade should increasingly be settled in African currencies through African infrastructure and supported by African institutions. She also referenced Ghana’s recently passed Virtual Asset Service Providers Act, designed to regulate emerging digital payment channels while protecting consumers.
The deputy governor called for harmonised regulatory standards across borders, particularly in know-your-customer and anti-money laundering requirements, consumer protection, and data sharing. She described these measures as essential steps to make the single market operational.
The Bank of Ghana reaffirmed its readiness to collaborate with regional partners to advance continental payment integration.
