Rwanda and Ghana are working to link their national payment systems and establish a fintech licensing passport system, according to Rwanda’s central bank governor, John Rwangombwa.
The initiative, backed by the Monetary Authority of Singapore, will officially launch at the Inclusive FinTech Forum in Kigali from February 24-26.
Why it matters
Africa’s fintech sector faces hurdles due to fragmented regulations, forcing companies to obtain multiple licenses across different countries.
Rwanda and Ghana aim to streamline this process, drawing inspiration from Singapore’s fintech success in East Asia.
The big picture
- The Africa Fintech Network has long argued that regulatory fragmentation slows down innovation and cross-border expansion.
- A unified licensing system could accelerate fintech growth, reduce costs, and encourage more African nations to join.
- Seamless payments between countries would boost intra-African trade.
Yes, but: There’s no set timeline for when the payment system linkage will go live.
Zoom in
Rwangombwa stressed the need for expanding membership in the Pan-African Payment and Settlement System (PAPSS), launched by Afreximbank in 2022 to eliminate the need for dollar or euro conversions in intra-African trade.
State of play
- PAPSS currently has 14 central bank members and 50 commercial banks.
- Egypt joined in November, with more of its banks expected to sign up.
- Rwangombwa is pushing for PAPSS to provide the technical backbone for the Ghana-Rwanda payments linkage.
Between the lines
Progress on AfCFTA implementation has been slow, and cross-border payments remain a bottleneck. “That’s what we want to achieve across the continent,” Rwangombwa said.
Source: The Banker
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