KIGALI, Rwanda — In a significant move to enhance financial integration across Africa, the central banks of Rwanda and Ghana, in collaboration with Singapore’s Global Finance and Technology Network (GFTN), have launched a cross-border digital payment system aimed at facilitating seamless and cost-effective transactions across the continent.
The initiative, known as the Next-Gen Digital Payment Infrastructure (DPI), was unveiled at the 3i Africa Summit in Accra. It seeks to modernize Africa’s cross-border payment systems through a central bank-led, innovation-enabled framework co-developed with fintechs and financial institutions.
Dr. Johnson Asiama, Governor of the Bank of Ghana, emphasized the project’s potential to accelerate interoperability across the continent’s financial systems, easing the movement of value.
“This initiative aims to modernize Africa’s cross-border payment ecosystem through a central bank-led, innovation-enabled approach co-developed with fintechs and financial institutions,” he stated.
The DPI framework focuses on three core pillars: digital identity infrastructure, interoperable payment systems, and license passporting with data exchange.
These components are designed to support seamless financial transactions, enable real-time cross-border transactions, and facilitate regulatory alignment, respectively.
John Rwangombwa, Governor of the National Bank of Rwanda, highlighted the project’s role in addressing the challenges of costly and inefficient cross-border transactions that have long hindered trade and financial inclusion in Africa. “Africa is home to one of the most dynamic financial ecosystems, yet cross-border transactions remain costly and inefficient, limiting trade and financial inclusion.
This project is designed to challenge this narrative by creating a system that facilitates instant, low-cost, and secure payments across African borders,” he said.
The collaboration also includes a fintech license passporting framework between Ghana and Rwanda, allowing fintech companies licensed in one country to operate in the other with minimal additional regulatory requirements.
This framework aims to simplify cross-border expansion for fintech firms, minimize regulatory redundancies, and foster innovation.
Singapore’s involvement, through the GFTN, underscores its commitment to expanding its fintech ecosystem globally and supporting digital financial integration in Africa.
The GFTN, an initiative by the Monetary Authority of Singapore, serves as a platform to harness technology and foster innovation for more efficient, resilient, and inclusive financial ecosystems through global partnerships.
