Senior
Advisor to the Vice President, Professor Kwaku Appiah-Adu, says full
implementation of the e-Cedi will diversify digital payment and ensure a secure
and robust payment infrastructure in the country.
As a
result, he called on players within the financial services industry to invest
in technology and innovation to ensure smooth implementation of the e-Cedi,
which is expected to quicken the country’s COVID-19 era economic recovery.
“Considering
the broad structural changes brought about by the pandemic, now is an ideal
time for many within the financial services industry to invest in technology
and innovation. In the past, digital adoption has been hindered by generational
divides; but the pandemic has been a great equaliser,” said the Vice President’s
senior advisor.
He
was speaking at the first-ever Ghana-Israel FINTECH SUMMIT—GIFS 2022, themed Innovation
in Financial Service Delivery, on Wednesday, June 1, 2022, in Accra.
The
central bank has started piloting an offline version of the e-Cedi to be used
for consecutive payments in areas yet to be connected to digital and Internet
infrastructure, according to Bank of Ghana Governor, Dr. Ernest Addison.
The
piloting is being carried out at Sefwi Asafo in the Western North Region, where
select users in that community have been using it for daily purchases such as
food, groceries and drinks.
This
development, according to Professor Appiah-Adu, has the potential to make
markets more diverse and competitive at a time innovation has introduced
competition and increased inclusion – particularly in emerging markets and
developing economies where fintech seems to have thrived, and especially in
markets where the financial system has been less developed.
Acknowledging
how the underlying economics of intermediation combined with new technology may
lead to concentration among traditional and new financial services providers,
he assured that the priority government gives to the ‘digital economy’ explains
why the president established the Ministry of Communications and
Digitalisation; and there are regulations, institutions and systems put in
place to help mitigate the attendant risks.
The
Head of Fintech and Innovation at the Bank of Ghana, Kwame A. Oppong – who also
spoke at the summit, said digitalisation has become a part of everyday life and
activities affecting every sector of the Ghanaian and global economy.
“The
record adoption of digital technologies has transformed the delivery of
financial services and products, largely onboarding the underbanked and
unbanked population to the formal financial system. This development has
accelerated the attainment of our financial inclusion goals premised on a sound
legal and regulatory environment,” he stated.
He
said the emergence of new digital financial services, products and solutions
has more broadly introduced significant complexities that require sector
supervision focused to understand and supervise effectively.
Commenting
on the platform provided by the summit, he said it will provide the Ghanaian
fintech sector with a unique platform to share experiences and deliberate on
how the adoption of digital technologies can facilitate and strengthen trade
ties between Ghana and Israel, to position Ghana’s fintech space as a viable
option for investors while enhancing the pursuit of financial inclusion goals.
The
high-tech sector in Israel continues to thrive, accounting for over 11 percent
of GDP – more than that of any other OECD country – and backed by robust
governmental investment in Research and Development.
Because
of this, the Israeli Ambassador to Ghana, Liberia and Sierra Leone, Shlomit
Sufa, said the Israeli fintech sector like every other high-tech sector has
taken the lead to develop innovative products that bring the future closer to
today.
“Israeli
fintech companies are fearless; they approach innovation with the global market
in mind, and we are happy to have with us today, nine of these companies to
study and understand the fintech ecosystem in Ghana through this summit. They
are also here to find suitable business partners and, hopefully, be ambassadors
for the potentials which exist in the fintech industry of Ghana when they go
back to Israel,” she said.
The
participation of these nine leading Israeli fintech companies in the summit,
she said, depicts the great interest many Israeli companies are showing for
doing business in Ghana. “It is my desire that through the Ghana-Israel Fintech
Summit we will strengthen the relationship between the Ghanaian and Israeli
fintech ecosystem.”
Source: thebftonline.com