The Chief Commercial Operations Officer of MobileMoney LTD (MTN MoMo), Abdul Razak Issaka Ali has urged the Bank of Ghana (BoG) to move more quickly on enabling cross-border mobile money solutions, emphasizing their potential for regional trade and financial inclusion.
Ali expressed frustration that despite many years of discussion and pilot programmes, Ghana has yet to achieve seamless cross-border mobile money interoperability. He said regulatory frameworks are progressing too slowly and marked by uncertainty, which is constraining private sector innovation.
He encouraged the BoG not to fear fintech innovation within reason, pointing out that existing regulatory sandbox frameworks allow experimentation under supervision. “Let’s move a little faster,” he said. He also cited PAPSS (Pan-African Payment and Settlement System) as an example of an innovation that should be more broadly embraced.
Key examples & pilots
- BrijX: This is a pilot operated by Brij Fintech Ghana, approved under the BoG’s sandbox programme. It is a business-to-business (B2B) currency swap platform enabling direct swaps between the Ghanaian cedi and the Nigerian naira. The idea is to eliminate or reduce the need for foreign exchange intermediaries or physical fund transfers across borders.
- BoG has put safeguards in place: transaction limits, participation limits, KYC (Know Your Customer), AML (Anti-Money Laundering) protocols, and consumer protection measures during the testing phase. But Ali says these should give regulators confidence to accelerate implementation rather than delay.
Challenges & Regulatory Ambiguity
Ali lamented that the government’s posture to cross-border mobile money has been tentative. He pointed to risks cited by regulators—capital flows, exchange rate volatility, misuse—as understandable concerns, but believes they are manageable under the sandbox and pilot models.
Uncertainty around whether the government intends to push forward with cross-border mobile money was described as “cat-and-mouse,” with private sector players unsure how much risk is acceptable and what regulatory direction will be taken.
Why It Matters
- Regional integration of mobile money could reduce remittance costs, facilitate cross-border trade, and deepen financial inclusion. Ali argued Ghana can become a fintech hub connecting West Africa if such changes are made.
- Digital Public Infrastructure (DPI), including digital identity, data sharing, and payment frameworks, was discussed as part of broader inclusion goals. Regulatory flexibility and public-private collaboration are seen as essential
Source: asaaseradio.com
