The Chief Executive of Stanbic Bank Ghana, Kwamina Asomaning, has called for more efficient cross-border payment systems to help businesses reduce transaction costs, manage financial risks and compete effectively in regional and global markets.
Speaking at the third-quarter Stanbic Bank/Graphic Business Breakfast Meeting in Accra yesterday, he said businesses increasingly operated across multiple markets, making the efficient movement of money as important as the movement of goods.
The theme for the meeting, “Moving Money. Moving Trade. Moving Ghana – Making it easier to buy, sell and pay across borders,” provided an opportunity for stakeholders to examine the financial challenges facing businesses engaged in international trade.
Payment costs
Mr Asomaning said a business in Accra could source machinery from China, obtain inputs from South Africa, sell products to customers in Côte d’Ivoire and pay for digital services hosted in another country.
The increasing complexity of international transactions meant businesses needed payment systems that provided speed, predictability and cost efficiency while helping them manage foreign exchange and liquidity risks, he said.
Mr Asomaning observed that delays and high costs in cross-border payments did not remain within the banking system, but were eventually reflected in import prices, exporters’ margins, the working capital positions of small and medium-sized enterprises (SMEs) and consumer prices.
“Trade is changing and the financial infrastructure supporting businesses must move with it. The real opportunity is to make the entire payment journey simpler and help businesses manage foreign exchange risk, liquidity, working capital and reconciliation more effectively,” he said.
Digital systems
Mr Asomaning said Ghana’s efforts to expand trade with Africa and other parts of the world, therefore, required the country to consider payment systems as part of its broader trade strategy.
He said emerging technologies were changing the way cross-border transactions were processed, with artificial intelligence increasingly being applied in fraud detection, compliance, reconciliation, liquidity management and foreign exchange decisions.
He added that innovations such as stablecoins, tokenised deposits and other digital assets were also challenging traditional approaches to the movement of value across borders.
Mr Asomaning said Stanbic Bank, as part of Standard Bank Group, had combined its African presence with global connectivity to support businesses operating across different markets.
“The question is not technology for its sake.
It is how these innovations can be used responsibly to make international commerce simpler, safer and more efficient for businesses,” he said.
Business access
He said platforms such as the Pan-African Payment and Settlement System (PAPSS), SWIFT and the Cross-Border Interbank Payment System (CIPS), together with domestic payment capabilities, had provided businesses with different channels through which they could transact across African, regional and global markets.
Mr Asomaning said the bank’s relationship with the Industrial and Commercial Bank of China, a shareholder in Standard Bank Group, had also provided additional depth along the China trade corridor.
He said the broader objective, however, was connectivity that enabled businesses to identify the most efficient payment route for each transaction and management of risks associated with it.
Suitable platform
The Managing Director of the Graphic Communications Group Ltd (GCGL), Ato Afful, said the breakfast meeting provided a platform for businesses, policymakers, financial institutions and other stakeholders to examine issues affecting the economy.
“I am confident that the conversation will give us practical ideas that can help businesses and policymakers address some of the challenges associated with cross-border trade,” he said.
