The Vice-President of the Republic of Ghana, Dr. Mahamudu Bawumia has emphasized the need for African central banks to intensify efforts in making mobile money interoperability a reality across the continent.
In his keynote address at the opening ceremony of the interoperability symposium, Dr. Bawumia presented a compelling case for digital payment systems to replace the long-standing idea of a single African currency.
Dr. Bawumia highlighted that the concept of a common currency, which has been under discussion since 1963, has been outpaced by the advancements in digital payment technologies. He argued that if made interoperable, mobile money could serve the same purpose as a single currency, facilitating seamless trade across the continent without the need for extensive economic convergence.
“If we are serious about it, we can work towards mobile money interoperability at the continental stage and, therefore, we should move away from the macroeconomic convergence criteria to digital payment convergence criteria.”
Dr. Mahamudu Bawumia,Vice-President of the Republic of Ghana
He pointed out that the challenges of achieving macroeconomic convergence among African nations have been a significant barrier to the implementation of a common currency. Instead, he proposed a shift towards digital payment convergence criteria, which could be more attainable and beneficial in the current technological era.
“Making mobile money interoperable allows our citizens across the continent to trade seamlessly,” Dr. Bawumia said.
Having successfully implemented mobile money interoperability in Ghana, Dr. Bawumia is now committed to advocating for this initiative across Africa. “We need the political will to get this done,” he remarked, emphasizing the importance of political support in driving such initiatives.
Dr. Bawumia shared his intentions with President Nana Addo Dankwa Akufo-Addo, indicating his plans to focus on continental mobile money interoperability after completing the domestic agenda.
Remarks from the Africa Prosperity Network
The symposium also featured insights from Gabby Asare Otchere-Darko, the executive chairman of the Africa Prosperity Network (APN). In his welcome address, Otchere-Darko highlighted the remarkable digital revolution that has taken place in Africa, particularly in the financial services sector. He noted that mobile money services have become integral to the daily lives of millions of Africans.
“Africa represents close to 70% of global money transaction values. In 2021, 50% of adults in sub-Saharan Africa made or received a digital payment, up from 34% in 2017.”
Gabby Asare Otchere-Darko, the executive chairman of the Africa Prosperity Network (APN)
Otchere-Darko underscored the transformative impact of digital payments on the continent, particularly for micro, small, and medium-sized enterprises (MSMEs), which are the backbone of African economies.
Otchere-Darko cited examples of countries like Botswana, Ghana, Kenya, and Zimbabwe, which have successfully introduced mobile money interoperability domestically. He argued that there is no reason why this success cannot be replicated across the entire continent.
“We in Ghana appreciate the value that interoperability has brought to both our social and economic lives,” Otchere-Darko said.
Otchere-Darko painted a vivid picture of the potential benefits, imagining a scenario where a Ghanaian tailor could sell clothes to a customer in Zimbabwe using their local currency via mobile money platforms. This would significantly enhance cross-border trade and economic integration.
Despite the promising outlook, Otchere-Darko acknowledged the current challenges. Many mobile operators and financial institutions in Africa operate in silos, limiting interoperability and constraining economic potential. He stressed the crucial roles of various stakeholders, including mobile network operators, financial institutions, regulatory bodies, and governments.
“Above all, we need the political will of African leaders and the courage and commitment of our central bank governors to make cross-border payments a reality.”
Gabby Asare Otchere-Darko, the executive chairman of the Africa Prosperity Network (APN)
The interoperability symposium highlighted the transformative potential of mobile money interoperability in Africa. Dr. Bawumia’s vision for a digitally connected continent, supported by robust political will and collaboration among key stakeholders, presents a pragmatic alternative to the elusive goal of a single African currency.
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