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In a significant step towards financial integration in Africa, the Bank of Ghana (BoG) and the National Bank of Rwanda (NBR) have signed a Memorandum of Understanding (MoU) to introduce a pioneering license passporting framework and cross-border payment interoperability for regulated financial technology (fintech) companies.
The MoU was signed on February 25, 2025, during the Inclusive Fintech Forum held in Rwanda from February 24 to 26. The agreement marks a collaborative effort to streamline regulatory requirements and facilitate fintech expansion across both nations.
The license passporting framework is designed to enable fintech companies regulated in either Ghana or Rwanda to operate seamlessly across both markets without undergoing a cumbersome re-licensing process. By minimising additional regulatory hurdles, the framework aims to accelerate fintech innovation, drive financial inclusion, and support the broader goal of an integrated African digital economy.
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The second pillar of the agreement—cross-border payment interoperability—seeks to enhance financial transactions between the two countries. The initiative will allow for seamless digital payments, benefiting businesses, individuals, and micro, small, and medium enterprises (MSMEs). By reducing transaction costs and improving efficiency, the agreement aligns with the African Continental Free Trade Area (AfCFTA) agenda of boosting intra-African trade.
Dr. Johnson Asiama, Governor of the Bank of Ghana, emphasised the importance of this initiative in fostering economic growth and digital financial services innovation.
“The signing of this memorandum of understanding reaffirms our commitment to the broader idea of an integrated African market, which holds the prospects of enhancing the livelihoods of our citizens. This collaboration will create opportunities for fintech innovation, investment, and economic development, particularly benefiting MSMEs that rely on digital financial services.”
Echoing similar sentiments, Mr. John Rwangombwa, Governor of the National Bank of Rwanda, underscored the importance of regulatory adaptation to support emerging financial technologies.
“We recognise that creating an effective cross-border payment infrastructure requires more than just innovation. It demands a forward-fitting regulatory framework that balances risks and opportunities, ensuring fintech growth while safeguarding financial stability.”
The agreement is expected to bring several key benefits, including:
- Enhanced Market Access: Fintech firms licensed in Ghana or Rwanda will have easier access to each other’s markets, fostering cross-border expansion.
- Improved Digital Transactions: Businesses and individuals will benefit from more efficient and cost-effective cross-border payments.
- Regulatory Cooperation: Both countries will work closely to align policies, reducing compliance burdens while ensuring financial system integrity.
- Boost to Intra-African Trade: The initiative supports the AfCFTA’s vision of seamless financial transactions across the continent.
With this MoU, Ghana and Rwanda are positioning themselves as frontrunners in Africa’s fintech revolution. The collaboration not only enhances bilateral ties but also sets a precedent for other African nations to establish similar frameworks that promote fintech growth and financial inclusion.
As both central banks move towards implementation, stakeholders—including fintech firms, financial service providers, and businesses—are expected to benefit from a more inclusive and efficient financial ecosystem. The success of this initiative could serve as a model for broader continental fintech integration, driving Africa’s digital economy to new heights.
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