Governor of Bank of Ghana (BOG), Dr. Ernest Addison calls for a collaborative effort from stakeholders and key market players to help in national development, through digitisation and fostering SMEs participation in the digital economy.
The Governor made this appeal in his opening address at the Business Sans Borders (BSB) stakeholder engagement programme, an initiative established between the Monetary Authority of Singapore (MAS), Bank of Ghana (BOG), and the Ministry of Finance (MoF).
The bilateral arrangement was established in 2019 under the direction of H.E. Dr. Alhaji Mahamudu Bawumia and H.E. Tharman Shanmugaratnam of Singapore.
“Let me state that the future is digitisation and fostering SMEs participation in the digital economy is an important component of our national development programme. This calls for our collective effort as stakeholders and market players, of which the BSB project will be an enabler”.
Dr. Ernest Addison
Also, the Governor disclosed that a Memorandum of Understanding (MOU) has been signed with the Monetary Authority of Singapore to collaborate on projects of mutual interest in the furtherance of the BSB project objectives.
In attendance at the BSB stakeholder engagement programme were the First and Second Deputy Governors of the Bank of Ghana, the Representatives from the Office of the Vice President.
Professor Appia-Adu, Representative of the Ministry of Finance, Chief Fintech Officer of the Monetary Authority of Singapore, Chief Executives Officers and Representatives of Banks, SDIs and Fintechs, Captains of Industry, and other Representatives of the Monetary Authority of Singapore among others.
Dr. Addison disclosed that the purpose of the bilateral collaboration with Singapore is to leverage the capabilities of digital technology to expand the frontiers of businesses and especially Small and Medium-sized Enterprises (SMEs) in Ghana and Singapore.
“The BSB project also includes a global innovation hub to help FinTech companies develop additional innovative services and products. This component of the digital hub is very important to the Bank of Ghana.
“Broadly, this project is aligned with the government’s national digitization agenda, as well as the Bank of Ghana’s cashlite and financial inclusion agenda, which has led to the implementation of widespread reforms in the payments and settlement system.
“More recently, the reforms in the financial services industry in collaboration with stakeholders have paved the way for expansive delivery of digital financial services in the eco-system.
“One of the objectives of the payment systems reforms is to achieve a financially inclusive and economically empowered society. Delivering and economically empowered society hinges on strong SMEs since it accounts for close to 90 percent of businesses”.
Dr. Ernest Addison
Furthermore, the governor disclosed that SMEs’ active participation in the digital economy will enhance efficiency, extending the market reach, and build their capacity to generate employment opportunities and boost economic growth.
Additionally, Dr. Addison revealed that a broad-based acceptance of digital payments by SMEs will scale up product and services deployment and provide digital footprints for improved credit services by financial service providers.
“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. Ernest Addison
Dr. Addison used the opportunity to hint at the establishment of a Financial Trust Corridor (FTC) between the Bank of Ghana and the Monetary Authority of Singapore. The FTC is a dedicated ecosystem for mutual recognition and closer relationships between businesses including SMEs and financial institutions on the platform.
“The Trust Corridor will comprise 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.
“Participating SMEs will have the trust of financial institutions, leading to the much-needed financial sector support for SMEs growth”.
Dr. Ernest Addison
The Governor also admonished Ghanaians to leverage the opportunity of hosting the African Continental Free Trade Area (AfCFTA) to play a leadership role in improving the international trade fortunes of the Continent.
READ ALSO: Address the huge gap between BoG and Banks’ lending rates- Snr. Advisor to Prez
