The Monetary Authority of Singapore (MAS), the Bank of Ghana (BoG) and the Development Bank Ghana (DBG) today, Friday, November 4, 2022 signed a Memorandum of Understanding (MOU) to develop the Ghana Integrated Financial Ecosystem (GIFE).

The GIFE aims to enhance financial capabilities and access for micro, small and medium enterprises (MSMEs) in Ghana and generate greater opportunities for trade and financial services cooperation between Singapore and Ghana.

Dr. Ernest K.Y. Addison, Governor of Bank of Ghana, noted that the memorandum further demonstrates BoG’s commitment as a central bank, to working with key stakeholders to explore innovative financing models.

“It also further demonstrates our commitment to the Business Sans Borders initiative which we partnered with the Monetary Authority of Singapore to enhance MSME contribution to economic growth and in line with Government’s broader economic transformation goals”.
Dr. Ernest K.Y. Addison

Over time, it is envisaged that the integrated financial ecosystem model can serve the Asia-Africa SME trade corridor more broadly.

The GIFE will offer an open digital infrastructure for MSMEs in Ghana and Singapore in four key areas: The SME Financial Empowerment Programme will help MSMEs build foundational digital financial literacy skills and gain a good understanding of cross-border financial services ; MSMEs in Ghana and Singapore can expand their international business connections in Asia and Africa, through a network of business-to-business e-commerce platform; and DBG and partner financial institutions will provide digital trade finance and guarantees for eligible MSMEs through a digital platform.

MAS, BOG, DBG and financial institutions will jointly develop financial trust frameworks to assess credit worthiness for financing by enabling financial institutions to use alternative data sets, such as the track record of successful payments to suppliers and tax payments to relevant authorities.

GIFE as a collaborative effort across various sectors

The GIFE is a collaborative effort across public entities, financial institutions, FinTechs and tech solution providers in Ghana and Singapore. These include Proxtera, Consolidated Bank of Ghana, ANEXT Bank, Enterprise Singapore, and the Global FinTech Institute.

Mr. Sopnendu Mohanty, Chief FinTech Officer at MAS said “MAS has worked closely with Bank of Ghana since the announcement of the Financial Trust Corridor in 2020”.

“The GIFE is an important step to foster closer collaboration between the two central banks and important emerging markets. The GIFE is a rethink to potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap on based on their needs.”
Sopnendu Mohanty

On his part, Mr K Duker, Chief Executive Officer of DBG, described the partnership as pivotal to the Bank’s mission.

“We believe that this partnership with the Monetary Authority of Singapore and the GIFE programme mark a pivotal moment in DBG’s mission to provide sustainable finance solutions to Ghanaian businesses and facilitate multi-generational, sustainable economic growth.

“DBG recognizes the crucial role of SMEs in our country’s economy and the GIFE programme will further strengthen DBG’s ability to catalyze SME growth by ensuring that they get the financial solutions they need to achieve their full potential. SMEs are a key pillar of Ghana’s economic resilience, prosperity, and international competition, so I’m optimistic that our journey to unlock their potential will yield excellent results for our people and country.”
Mr K Duke

Ms Toh Su Mei, Chief Executive Officer of ANEXT Bank, said “ANEXT Bank is honored to join this private-public task-force in co-creating the FTC trust data framework to promote more trust amongst businesses and financial institutions globally”.

“It allows us to make financial services accessible and effortless for more SMEs as growing businesses can get access to global trades, and be more resilient against macroeconomic market disruptions.”
Toh Su Mei

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector.

As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and financial market infrastructures.