The “Scaling Up Interoperability: Using Mobile to Buy & Sell Across Africa” symposium, held on July 5th, 2024, at Accra’s Labadi Beach Hotel, concluded with a strong commitment to transforming Africa’s financial ecosystem. Organized by the Africa Prosperity Network (APN), the event convened key industry leaders, policymakers, and innovators to discuss the future of mobile money interoperability across the continent.
The Significance of Interoperability
Gabby Asare Otchere-Darko, Executive Chairman and Founder of APN emphasized the transformative power of mobile money in fostering financial inclusion. “Mobile money, a service that allows people to transfer money and make payments using their mobile phones, has become a significant part of daily life for millions of Africans,” he noted. In 2021, 50% of adults in Sub-Saharan Africa made or received a digital payment, up from 34% in 2017.
Otchere-Darko also highlighted the vast potential of interoperability. “Imagine what it will mean for a young Ghanaian tailor, whose clothes on Instagram can be bought by consumers in Zimbabwe using Zimbabwean dollars from their Econet mobile wallet, and this tailor in Tamale receiving payment in cedis,” he envisioned. This scenario underscores the need for political will and commitment from stakeholders to achieve seamless cross-border transactions.
Government and Central Bank Support
Ghana’s Vice-President, Dr. Mahamudu Bawumia, underscored the critical role of central banks in achieving continental interoperability. “We can work towards mobile money interoperability at the continental stage,” he stated, advocating for unified efforts among central banks. “All the Central banks should be part of PAPPs,” he added, emphasizing the importance of a collective approach.
Reflecting on Ghana’s achievements, Dr. Bawumia noted, “Ghana’s mobile money interoperability made Ghana the fastest-growing mobile money market in Africa and also became the number one in Africa in terms of access to financial inclusion.” He acknowledged the challenges in achieving a common currency but stressed the vital role of mobile money interoperability in enhancing financial inclusion across the continent.
Technological Advancements and Regulatory Frameworks
Highlighting the technological strides made in domestic payments, Dr. Ernest Addison, Governor of the Bank of Ghana, shared insights on the journey towards interoperability. “We moved from having interoperability among ATMs to having interoperability among mobile money, bank accounts, and the E-zwich card,” Addison recounted. He emphasized the need for a robust cross-border payment framework, stating, “An efficient cross-border payment interoperability system can enable seamless payments across African countries as well as provide extensive inclusivity.”
Addison discussed the foundational elements necessary for implementing cross-border payment interoperability. “These include the regulatory sandbox programs, the progressive regulatory frameworks, and the dynamic fintech sector eager for improved opportunities,” he said. However, he stressed that effective collaboration between regulators, financial institutions, mobile money operators, fintech innovators, and other stakeholders is crucial to addressing technical challenges, ensuring regulatory compliance, and building trust.
Chai Gand, a representative of the Central Bank of Nigeria, stressed the importance of regulatory frameworks and infrastructure in advancing mobile money interoperability. “As the African mobile money transaction industry tries to develop, we need to innovate and come up with regulations to protect the industry,” Gand stated. He called for collaborative efforts to combat fraud in the financial sector, emphasizing, “To protect customers, we need regulators to work together to come up with policies to block fraud in the financial sector.”
Ministerial Insights
Ursula Owusu-Ekuful, Minister of Communications and Digitalisation, Ghana, emphasized the importance of creating a cohesive ecosystem for achieving interoperability. “Achieving interoperability is not just about technological and infrastructural integration; it is about creating a cohesive ecosystem where financial transactions can be conducted effortlessly across borders,” she explained.
Owusu-Ekuful highlighted the government’s commitment to digitalization and infrastructure development. “My Ministry remains poised to emphasize the Government of Ghana’s commitment and achievements on the development of reliable and cost-effective world-class communications services and infrastructure,” she stated. She added that Ghana is working on frameworks to implement common standards and protocols to ensure seamless transactions regardless of service providers.
“Ghana and Côte d’Ivoire are on course for bilateral roaming. Talks are far advanced with Nigeria as well,” she announced, noting that such initiatives can facilitate interoperability among these countries. Owusu-Ekuful also stressed the importance of digital literacy and infrastructure, stating, “Digital literacy is necessary in the drive towards advancing mobile interoperability because there must be a clear understanding of the concept and how it works, coupled with the availability of feasible digital infrastructure.”
Panel Discussions Enriching the Symposium
The symposium also featured various panel discussions that brought in the technical expertise of industry players from commerce, technology, telecommunications, and other sectors. These discussions enriched the symposium by providing diverse perspectives and innovative solutions to the challenges of achieving mobile money interoperability across Africa.
A Milestone in Digital Payments
Dr. Addison marked the symposium as a significant milestone in advancing digital payments across Africa. He highlighted the potential of mobile technology to revolutionize financial interactions. “We live in a time where most Africans’ first interaction with the financial sector will be through their smartphones,” Addison noted. He emphasized the need for a robust cross-border payment framework, stating, “An efficient cross-border payment interoperability system can enable seamless payments across African countries as well as provide extensive inclusivity and expand access to pipelines and financial services for the youth, vulnerable groups, and striving political leaders.”
Moving Forward
The symposium served as a platform for stakeholders to share insights, challenges, and strategies for advancing mobile money interoperability in Africa. The collective call for robust regulatory frameworks, enhanced digital literacy, and infrastructure development underscores the continent’s commitment to financial inclusion and economic growth through digital payments.
A strategic compact document summarizing the discussions and presentations from the symposium will be generated and presented to the African Union (AU) in two weeks at the upcoming Mid-Year AU Summit. This document will serve as a blueprint to drive the next steps in achieving continent-wide mobile money interoperability.
As intra-African trade continues to grow, the integration of mobile money systems across borders will play a crucial role in facilitating seamless transactions and promoting economic prosperity. The APN and its partners remain dedicated to championing this cause, paving the way for a more interconnected and financially inclusive Africa.
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