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(Ecofin Agency) – Interoperability enables users to transact across various mobile money platforms and banks, making financial services more accessible, especially for unbanked and underbanked populations. It reduces the costs of currency conversion and cross-border transactions, lowering barriers for individuals and businesses to send and receive funds affordably.
In a milestone for African financial inclusivity, the Bank of Ghana has announced a pilot project for Africa’s first direct mobile money interoperability platform, connecting the Ghanaian Cedi and Nigerian Naira. Kwame Oppong, Director of Fintech and Innovation at the Bank of Ghana, shared the news during a program to drive banking connectivity and inclusivity across Africa on the sidelines of the IMF/World Bank Fall Meetings, held from October 21- 26.
“We’ve had conversations for the past decades about truly having a connected market. But for that dream to be realized it is important that we look to break some old barriers—some of which include long-standing policies like mobile interoperability that we are currently pursuing,” said Kwame Oppong.
This initiative, part of a larger drive for regional banking connectivity, is made possible through a partnership with U.S.-based Brij Technologies Inc. The company’s BrijX Currency Swap Platform will operate in Ghana’s Regulatory Sandbox, where businesses and individuals will be able to directly swap currencies without relying on traditional Forex services. This breakthrough is expected to enhance cross-border trade accessibility, a key aspect of financial inclusion for small and medium-sized enterprises (SMEs) and individual users who typically face limited access to financial products.
Cross-border financial interoperability is critical for Africa’s economic integration and trade. According to the Trade Law Centre (tralac), intra-African trade constitutes only 15% of the continent’s total trade, constrained by currency exchange costs and limited market interconnectivity. Enhancing interoperability could greatly increase this share, potentially unlocking billions in economic growth by facilitating more accessible and cost-effective cross-border transactions.
The BrijX platform’s commercial launch is scheduled for November 19, 2024, in Accra, marking a step toward seamless economic interactions within Africa. The direct Cedi-Naira swaps align with the broader vision of digital financial integration as a catalyst for economic growth across the continent.
Hikmatu Bilali
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