Ghana’s Finance Minister Calls for Digital Payment Revolution to Unlock Continental Trade
Ghana’s finance minister has urged the World Bank to accelerate support for a unified African payment system, marking an ambitious push to revolutionise cross-border trade across the continent’s $3tn economy.
Speaking at the World Bank African Caucus Meeting in Washington DC, Dr. Mohammed Amin Adam outlined a comprehensive vision for modernising Africa’s financial infrastructure, positioning digital innovation as the cornerstone of the continent’s economic integration agenda.
“The fragmentation of Africa’s payment systems remains one of the principal barriers to realising the full potential of intra-continental trade,” Dr. Adam told the gathering, chaired by World Bank President Ajay Banga. “We must move decisively to implement a unified digital payment architecture that serves all 54 African nations.”
The minister’s intervention comes at a critical stage for African economic integration. Despite the launch of the African Continental Free Trade Area (AfCFTA), which promises to create the world’s largest free trade zone by number of participating countries, cross-border payments remain cumbersome and expensive, often routing through foreign currencies and international banking networks.
Central to Dr. Adam’s proposal is the acceleration of the Pan-African Payment and Settlement System (PAPSS), an initiative designed to enable instant payments across African countries in local currencies. The system aims to slash transaction costs and processing times while reducing the continent’s dependence on foreign currency reserves for intra-African trade.
“The technology exists to transform how Africa trades with itself,” Dr. Adam emphasised. “What we need now is concentrated investment in digital infrastructure and a harmonised regulatory framework to make these solutions accessible to all African businesses, from major corporations to small-scale traders.”
The minister called for a three-pronged approach to modernising the continent’s financial architecture: substantial investment in ICT infrastructure, deployment of advanced technologies including blockchain and artificial intelligence, and strategic use of blended finance to attract private capital.
The World Bank’s new “digital as a vertical” strategy received particular attention, with Dr. Adam suggesting it could serve as a framework for expanding digital financial services across the continent. However, he stressed that success would require careful attention to cybersecurity and regulatory harmonisation.
“We cannot build a digital payment system without ensuring its absolute security and reliability,” he noted. “This requires not just technological investment but also regulatory cooperation across borders.”
The proposal comes against a backdrop of growing momentum for African economic integration. Intra-African trade currently accounts for approximately 15% of the continent’s total trade volume, significantly lower than other regions such as Europe (70%) and Asia (60%). The AfCFTA aims to boost this figure substantially, with some estimates suggesting it could double within a decade if key infrastructure barriers are addressed.
Industry analysts have welcomed the minister’s focus on digital solutions. stating that a unified digital payment infrastructure could be transformative, particularly for small and medium enterprises that currently struggle with cross-border transactions.
Dr. Adam acknowledged these challenges but insisted they were surmountable with adequate international support. He called on the World Bank to engage more deeply with regional financial intermediaries to analyse gaps in existing payment systems and develop a comprehensive roadmap for integration.
The minister’s proposals have gained particular relevance as African nations seek to build more resilient economic structures in the wake of recent global economic challenges. With a young, increasingly digital-savvy population and growing mobile phone penetration, many see digital financial services as key to unlocking the continent’s economic potential.
The success of mobile money services in several African countries, including Ghana, has already demonstrated the transformative potential of digital financial innovation. The minister’s vision would extend this revolution to cross-border trade, potentially creating new opportunities for millions of African businesses and entrepreneurs.
As Dr. Adam concluded his address, he emphasized the urgency of action: “The digital transformation of Africa’s payment systems is not just an opportunity – it’s an imperative for our economic future.”
The Finance Minister is leading Ghana’s delegation to the Annual Meetings of the IMF and the World Bank, currently happening in Washington D.C.
