FinTechs Piloting Currency Interoperability for Cross-Border Trading, Says CFO Antoinette Kwofie
Chief Finance Officer (CFO) and Non-Executive Director of Mobile Money Limited Ghana, Antoinette Kwofie, has disclosed that some selected fintech firms are working with Central Banks to pilot interoperability between African currencies to facilitate cross-border trade on the continent.
According to her, the pilot aims to draw valuable lessons to assist central banks in building frameworks that would enable direct currency swaps between African countries, eliminating the need for conversions through the US dollar.
“Currently, you can’t swap from one African currency to another straight up; you go through the dollar. That is where the risk comes in, and the conversation with regulators has been about how we can remove the dollar from the middle. So if I sell to someone in South Africa, they pay me in rands but I get my money in cedis. Because the reality is that whether we like it or not, there’s two-way trade between many countries,” she noted during a panel discussion at the maiden edition of the African Women in Leadership Organisation (AWLO) Ghana Impact Dinner themed, “Strutting Into Global Markets: Utilising Traditional & Venture Capital Finance For Business Leverage.”
Speaking further during the panel discussion, Ms. Kwofie emphasized that genuine two-way trade flows between African countries making it imperative for regulators to come to the negotiation table.
“We need regulators to come to the table because it needs to be done at that level. They can actually cross-settle at the end of the day by calculating how many Rands are due to be settled in Ghana and how many Cedis are due to be settled in South Africa, and cross-settle it at that level,” she elaborated.
She added that following the ongoing pilot between Ghana and Nigeria, the initiative would be extended to other African countries where significant bilateral trade exists with Ghana.
“I believe that one country at a time and one bilateral discussion at a time, we will make progress. Hopefully, in 10 years time, we’ll look back and see that we’re in a much better place and we can actually mitigate the impact of the dollar on all our currencies,” she said.
Speaking further, she indicated that MTN is working closely with regulators to enhance payment infrastructure to support the African Continental Free Trade Area (AfCFTA) initiative, stressing the need for Africa to leverage the single continental market.
“We must take advantage of the single market under the AfCFTA pact,” she asserted.
Vice President of AWLO, Joyce Sika Twum, in her remarks, commended women leaders across various sectors, stating, “Each of you has exemplified what it means to be a trailblazer and a steward of influence in your respective fields.”
She further praised the resilience and leadership of African women, noting, “Your lives as women speak of quiet strength, purposeful leadership, and an unwavering belief that Africa’s future will be shaped in no small part by women who dare to rise above circumstance, transcend limiting worldviews, and overcome intrinsic barriers.”
AWLO, founded in 2009, is an international non-profit organisation dedicated to advancing women’s leadership through gender parity, leadership effectiveness, and global development.
