Rwanda’s
Minister of Foreign Affairs, Olivier Jean Patrick Nduhungirehe, has held a
bilateral meeting with Ghana’s Minister of Foreign Affairs, Samuel Okudzeto
Ablakwa. The meeting which was held on the sidelines of the 46th Ordinary
Session of the African Union (AU) Executive Council in Addis Ababa centered on
deepening the strong bilateral relations between Rwanda and Ghana, with a
particular focus on advancing financial technology (fintech) and cross-border
payment systems to boost intra-African trade and economic integration.
This high-level
engagement comes at a pivotal moment, as the central banks of Rwanda and Ghana
are collaborating to link their national payment systems and establish a
fintech licensing passport system. These initiatives aim to replicate the
success of Singapore’s fintech ecosystem in East Asia and create a seamless
payment infrastructure that can serve as a model for other African countries.
In andothger development the Central Bank Governor of Rwanda, John Rwangombwa
has highlighted the significance of this collaboration in an interview with The
Banker. He emphasized that linking national payment systems and establishing a
fintech licensing passport between Rwanda and Ghana will facilitate faster,
cheaper, and more efficient cross-border transactions. “Seamless payments
between countries will increase African trade,” Rwangombwa said. “That’s
what we want to achieve across the continent.”
The initiative
aligns with the broader goals of the African Continental Free Trade Area
(AfCFTA), which seeks to create a single continental market for goods and
services. However, Rwangombwa acknowledged that the implementation of the
AfCFTA agreement has been slower than anticipated. To address this, Rwanda and
Ghana are working to attract more African countries to join their fintech and
payment system integration project, leveraging the Pan-African Payment and
Settlement System (PAPSS) as a key enabler.
Established by
the African Export-Import Bank (Afreximbank) in January 2022, PAPSS aims to
simplify cross-border payments by eliminating the need to convert African
currencies into dollars or euros. This reduces transaction costs and processing
times, making it easier for businesses and individuals to conduct transactions
across borders.
Currently,
PAPSS has 14 African central bank members and approximately 50 commercial
banks. Egypt’s central bank recently joined the system in November 2024,
signaling growing momentum for the initiative. Rwangombwa expressed optimism
that more countries will join PAPSS during the upcoming forum in February 2025,
further expanding its reach and impact.
By: Nana Appiah Acquaye
