Three sign pact to develop integrated financial ecosystem to support growth of Asia-Africa SME trade corridor

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The Monetary Authority of Singapore (MAS), Bank of Ghana (BOG) and Development Bank of Ghana (DBG) have signed a Memorandum of Understanding to develop Ghana’s Integrated Financial Ecosystem (GIFE).

GIFE aims to improve the financial capabilities and access of Micro, Small and Medium Enterprises (MSMEs) in Ghana and generate greater opportunities for trade and financial services cooperation between Singapore and Ghana.

Over time, it is envisioned that the integrated financial ecosystem model can serve the Asia-Africa SME trade corridor more broadly.

A statement issued by the Bank of Ghana said that “GIFF will provide open digital infrastructure to MSMEs in Ghana and Singapore in four key areas.

Firstly, he said, “The SME Financial Empowerment Program will help MSMEs acquire fundamental digital financial literacy skills and gain a good understanding of cross-border financial services.

Second, MSMEs in Ghana and Singapore can expand their international business relationships in Asia and Africa, through a network of business-to-business e-commerce platforms.

Third, DBG and partner financial institutions will provide digital trade finance and guarantees to eligible MSMEs through a digital platform.

Finally, the release says that MAS, BOG, DBG and financial institutions will jointly develop financial trust frameworks to assess funding creditworthiness by allowing financial institutions to use alternative data sets, such as history of successful payments to suppliers and tax payments to the persons concerned. authorities.

The statement states that “Bank of Ghana is the central bank of Ghana and the Development Bank of Ghana is a development finance institution established in 2022 to provide long-term loans to small and medium-sized enterprises.”

He adds that one example is the Financial Trust Corridor (FTC) initiative aimed at increasing trust, trade and recognition between businesses and financial institutions of the two countries.

Collaborative effort

He noted that GIFE is a collaborative effort between public entities, financial institutions, FinTechs and technology solution providers in Ghana and Singapore.

These include Proxtera3, Consolidated Bank of Ghana, ANEXT Bank, Enterprise Singapore and the Global FinTech Institute.

Work in close collaboration

The Director of FinTech, MAS, Mr. Sopnendu Mohanty, said in the statement that “MAS has worked closely with the Bank of Ghana since the announcement of the Financial Trust Corridor in 2020.

He said the GIFE was an important step in fostering closer collaboration between the two central banks and major emerging markets.

He said it was a revamp to potentially go beyond traditional approaches to financial inclusion with combined support mechanisms powered by smarter data that MSMEs and financial institutions can leverage according to their needs. .

BoG’s Commitment

Governor of the Bank of Ghana, Dr Ernest Addison, said, “This memorandum further demonstrates the commitment of the BoG as a central bank, to work with key stakeholders to explore innovative financing models. .

It also demonstrates our commitment to the Business Without Borders initiative which we have partnered with the Monetary Authority of Singapore to enhance the contribution of MSMEs to economic growth and in line with the will of the government
broader goals of economic transformation.

Turning point

DBG’s Chief Executive Officer, Mr. K Duker, said, “We believe this partnership with the Monetary Authority of Singapore and the GIFE program marks a pivotal moment in DBG’s mission to provide sustainable financial solutions to businesses. Ghanaians and facilitate multi-generational relationships, sustainable economic growth.

DBG recognizes the crucial role of SMEs in our country’s economy and the GIFE program will further strengthen DBG’s ability to catalyze the growth of SMEs by ensuring they get the financial solutions they need to realize their full potential. .

He said that “SMEs are a critical pillar of Ghana’s economic resilience, prosperity and prosperity.

international competition, so I am optimistic that our journey to unleash their potential will yield great results for our people and our country.

ANEXT Bank Chief Executive Officer, Ms. Toh Su Mei, said, “ANEXT Bank is honored to join this private-public working group to co-create the FTC Trust Data Framework to promote greater great trust between businesses and financial institutions on a global scale.

This allows us to make financial services accessible and effortless for more SMEs, as growing businesses can access global exchanges and be more resilient to macroeconomic market disruptions. »

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