Minister of Finance, Dr. Mohammed Amin Adam, has called on the World Bank to expedite support for a unified African payment system, which aims to revolutionise cross-border trade across the continent’s US$3 trillion economy.
He made this appeal at the World Bank African Caucus Meeting in Washington DC, where he emphasised the need for digital innovation to modernise Africa’s financial infrastructure and drive economic integration.
Dr. Adam highlighted that the fragmentation of Africa’s payment system is a significant barrier to realising the full potential of intra-continental trade.
“The fragmentation of Africa’s payment systems remains one of the principal barriers to realizing the full potential of intra-continental trade,” Dr. Adam told the gathering, chaired by World Bank President Ajay Banga.
“We must move decisively to implement a unified digital payment architecture that serves all 54 African nations,” he added.
Despite the launch of the African Continental Free Trade Area (AfCFTA), cross-border payments remain cumbersome and expensive, often involving foreign currencies and international banking networks.
Dr. Adam proposed an acceleration of the Pan-African Payment and Settlement System (PAPSS), which aims to enable instant payments across African countries in local currencies, reducing transaction costs and processing times, and decreasing dependence on foreign currency reserves.
“The technology exists to transform how Africa trades with itself. What we need now is concentrated investment in digital infrastructure and a harmonized regulatory framework to make these solutions accessible to all African businesses, from major corporations to small-scale traders,” he said.
Ghana’s finance minister also proposed a three-pronged approach to modernising the continent’s financial architecture, substantial investment in ICT infrastructure, deployment of advanced technologies like blockchain and artificial intelligence, and strategic use of blended finance to attract private capital.
He also stressed the importance of cybersecurity and regulatory harmonisation to ensure the security and reliability of the digital payment system.
The minister’s call comes at a critical time for African economic integration.
Intra-African trade currently accounts for about 15% of the continent’s total trade volume, significantly lower than other regions such as Europe (70%) and Asia (60%).
The AfCFTA aims to boost this figure substantially, potentially doubling it within a decade if key infrastructure barriers are addressed.
Meanwhile, industry analysts have welcomed the focus on digital solutions, noting that a unified digital payment infrastructure could be transformative, especially for small and medium enterprises struggling with cross-border transactions.
Dr. Amin Adam in his concluding remarks called on the World Bank to engage more deeply with regional financial intermediaries to analyse gaps in existing payment systems and develop a comprehensive roadmap for integration.
“We cannot build a digital payment system without ensuring its absolute security and reliability. This requires not just technological investment but also regulatory cooperation across borders,” he mentioned.
Dr. Amin Adam further emphasised the urgency of action, stating that the digital transformation of Africa’s payment systems is not just an opportunity but an imperative for the continent’s economic future.
He is leading Ghana’s delegation to the Annual Meetings of the IMF and the World Bank, currently taking place in Washington D.C.
ID/MA
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