Graphic Business / Stanbic Bank Breakfast: Stakeholders Push for Easier Cross-Border Payments to Boost Intra-African Trade

The Chief Executive Officer of Stanbic Bank Ghana, Kwamina Asomaning, has urged businesses to adapt to the rapidly evolving cross-border payments landscape by embracing more efficient and responsible financial technologies.

He said the future of international payments may not be defined by a single payment system, currency or transaction corridor, urging businesses to understand how to select the most efficient payment route for each transaction.

Mr. Asomaning was speaking at the Graphic Business/Stanbic Bank Breakfast Meeting held on Tuesday, September 22, under the theme, “Moving Money.

Moving Trade. Moving Ghana: Making it easier to sell, buy and pay across borders.”

According to him, businesses that understand how to navigate the growing range of payment options will be better positioned to respond to changes in the global financial landscape.

He noted that Artificial Intelligence (AI) is already transforming key areas of financial services, including fraud detection, regulatory compliance, reconciliation, liquidity management and foreign exchange decision-making.

Mr. Asomaning also pointed to emerging innovations such as stablecoins, tokenised deposits and other digital assets, which he said are challenging traditional approaches to the speed and efficiency of cross-border payments.

He, however, stressed that technology should not be adopted simply for its own sake, but should be applied responsibly to make international commerce simpler, safer and more efficient.

He disclosed that Stanbic Bank is also working to build an integrated payments ecosystem that will enable customers to transact across African, regional and global markets through a single banking relationship.

Exchange-rate challenges remain
The discussion also focused on some of the challenges businesses continue to face despite the progress made in cross-border payment systems.

The Sustainability Manager of Miniplast Limited, Dr. Paa Kwesi Eduaful Abaidoo, said initiatives such as the Pan-African Payment and Settlement System (PAPSS) have helped make cross-border transactions easier and more streamlined.

He noted that PAPSS has reduced some of the difficulties associated with dealing with multiple currencies, making transactions across African countries relatively easier compared with traditional payment systems such as SWIFT.

However, Dr. Abaidoo said exchange-rate disparities remain a major obstacle to effective intra-African trade.
He pointed to differences between the Bank of Ghana’s official exchange rate and rates available on the market as a challenge affecting exporters, importers and capital accumulation.

According to him, addressing exchange-rate challenges will be critical to increasing the volume and extent of trade among African countries.
He also highlighted Africa’s fragmented currency landscape, noting that the continent has more than 40 currencies, each with varying levels of volatility.

Stakeholders urged to strengthen existing systems
Meanwhile, the Head of Corporate and Investment Banking at Stanbic Bank Ghana, Musah Abdallah, said the progress made towards improving intra-African trade and payments must be recognised despite the challenges that remain.

He said the establishment of the African Continental Free Trade Area (AfCFTA), together with the partnership with Afreximbank to develop payment infrastructure, represents an important step towards facilitating trade across the continent.

Mr. Abdallah said the focus should now be on strengthening existing systems and finding practical ways to manage currency volatility rather than discarding the progress already made.

He noted that faster and more efficient payment systems can help businesses manage the risks associated with fluctuations in exchange rates.

He also called for stronger collaboration among banks, fintech companies and regulators, including the exploration of emerging technologies such as stablecoins, to develop a more robust payment infrastructure for Africa.

According to him, banks also have a role to play in helping businesses manage currency volatility through financial solutions, including hedging instruments.

He said stakeholders must continue to assess what can be done to improve existing systems and ensure that payment infrastructure effectively supports the growth of intra-African trade.

The breakfast meeting brought together industry players and stakeholders to discuss the opportunities and challenges surrounding cross-border payments and their implications for businesses and trade in Ghana and across Africa.

Story by Grace Baaba Sam