BoG to connect Ghanaian SMEs to international trade opportunities

On August 19, 2021, 4:00 AM

The Bank of Ghana (BoG) says it has established a strong foundation to connect Small and Medium-sized Enterprises (SMEs) to global digital payment platforms to enable them to benefit from international trade opportunities.

To this end, it has developed a network of digital platforms to serve as a global public infrastructure to facilitate cross-border trade among Ghanaian SMEs and the other business across the world.

The move forms part of the Central Bank and the government’s drive to transform the payment system in the economy from physical cash to digital platforms through the cashlite agenda.

Speaking at a stakeholder engagement in Accra on Wednesday, August 18, the Governor of the central bank, Dr Ernest Addison, said, ways have been paid for expansive delivery of digital financial services in the eco-system.

This is through the Business Sans Borders (BSB) the initiative, which would create a digital-hub and serve as a connector of platforms of businesses in Asia and beyond to Ghanaian SMEs and financial institutions.

“With the full implementation of the BSB initiative, Ghanaian SMEs will be able to access diversified trade opportunities as well as critical, quality ecosystem facilities such as finance, accounting, and business referrals with Singapore,” Dr Addison stated.

The BoG Governor indicated that delivering a financially inclusive and economically empowered society hinges on strong SMEs, as it account for close to 90% of businesses, and said payment systems would help to achieve that.

“Therefore, facilitating SMEs participation in the digital economy will enhance efficiency, extending market reach, and build their capacity to generate employment opportunities and boost economic growth,” Dr Addison said.

He further stated that, “the broad-based acceptance of digital payments by SMEs will scale up products and services deployment, and provide digital footprints for improved credit services by financial service providers.”

He also stated that the central bank the Monetary Authority of Singapore (MAS) are creating a Financial Trust Corridor (FTC), a dedicated ecosystem for mutual recognition and closer relationships between businesses, including SMEs, and financial institutions on the platform.

The Trust Corridor would consist of a governance framework and digital infrastructure for banks and FinTech companies in both countries.

“Participants can then refer to and utilise key information available on the platform for credit assessment, whilst adhering to domestic and international regulations, including data protection and Anti-Money Laundering requirements,” he remarked.

Also, participating SMEs would have the trust of financial institutions, leading to the much-needed financial sector support for SMEs growth.

The BSB and AfCFTA

Regarding the African Continental Free Trade Area (AfCFTA), the BoG governor opined that the BSB project provides another important platform towards improving the international trade fortunes, as the lessons to be learnt would be valuable to AfCFTA’s project on internationalisation of SMEs.

Dr Addison, however, underscored that the achievement of this goal is a shared responsibility of both the government of Ghana and all private sector actors, and other stakeholders in the financial sector.

The Business Sans Borders initiative

The BSB project, an initiative developed by the MAS and Infocomm Media Development Authority (IMDA), is being implemented in Ghana in partnership with BOG and the Ministry of Finance.

The project seeks to develop a network of digital platforms to serve as a global public infrastructure to simplify and enhance across national boundaries trade.

It is a hybrid global meta-hub for business and digital services, which enables enhanced domestic and international trade opportunities for SMEs and interoperability between SME ecosystems.

It also facilitates quick and intuitive access in the provision of digital services with seamless integration, and a sandbox environment to accelerate testing and delivery of new services for SMEs.

Story By Francis Ntow