Africa’s $2.8 trillion single market risks being constrained by costly and slow cross-border payments, the Bank of Ghana said on Thursday, stressing that trade agreements alone are not enough to drive integration.
Speaking at the African Prosperity Dialogue on behalf of Governor Johnson Pandit Asiama, Second Deputy Governor Matilda Asante-Asiedu said that without efficient payment systems, the continent’s trade ambitions cannot be realised.
“Trade agreements alone do not create trade. Payments make trade possible,” she said.
While the African Continental Free Trade Area (AfCFTA) has created a framework for 1.5 billion people, practical obstacles remain. Transaction costs for intra-African transfers frequently range from 7% to 10%, compared with a global average of about 3%, and settlements can take days or weeks. More than 80% of these payments are routed through banks outside the continent, largely in foreign currencies, costing Africa an estimated $5.3 billion annually.
The central bank highlighted the disproportionate effect on small businesses, women traders, and young entrepreneurs, who form the backbone of Africa’s informal and digital economies.
“High transaction costs and payment inefficiencies disproportionately affect these groups. Therefore, removing payment barriers will unlock scale, strengthen competitiveness, and expand opportunity across Africa,” Asante-Asiedu said.
Ghana has invested in domestic digital payment infrastructure to support real-time transfers across banks, mobile money operators, and fintech platforms, providing a foundation for regional integration. The country is also a key participant in the Pan-African Payment and Settlement System (PAPSS), which enables settlements in local currencies, shortens payment chains, and reduces costs for traders.
Looking ahead, the Bank said African trade should increasingly be settled in local currencies, supported by continental infrastructure and institutions.
“African trade must increasingly be settled in African currencies, through African infrastructure, and supported by African institutions,” Asante-Asiedu said.
The Bank also highlighted ongoing initiatives, including fintech passporting with Rwanda, pilot programs for next-generation digital public infrastructure, and the recently passed Virtual Asset Service Providers Act, designed to regulate emerging digital payment channels while protecting consumers. Harmonising regulatory standards across borders, particularly in KYC/AML, consumer protection, and data sharing, was cited as a key step to making the single market functional.
“At the Bank of Ghana, we stand ready to collaborate with all partners to help realise this vision,” Asante-Asiedu added, underscoring the central role of payments in Africa’s economic integration.
