Governor of the Bank of Ghana, Dr. Ernest Addison
• Ghana and Singapore are a creating Financial Trust Corridor to improve the digital economy of both countries
•The FTC is a dedicated ecosystem for the mutual recognition of SMEs, businesses and financial institutions
•The FTC will also comprise of a governance framework and digital infrastructure for banks and FinTech firms in Ghana and Singapore
Ghana’s Central Bank and the Monetary Authority of Singapore (MAS) are in the process of creating a Financial Trust Corridor (FTC), Governor of the Bank of Ghana, Dr Ernest Addison has revealed.
The platform will serve as a dedicated ecosystem for the mutual recognition of Small Medium Enterprises, businesses, and financial institutions seeking to improve closer relations in the digital economy.
Making the disclosure at a Business Sans Borders (BSB) stakeholder engagement on Wednesday, August 18, 2021 Governor of the Bank of Ghana, Dr Ernest Addison explained the FTC will comprise of a governance framework and digital infrastructure for banks and FinTech firms in Ghana and Singapore.
“Participants can then refer to and utilise key information available on the platform for credit assessment, whilst adhering to domestic and international regulations, including data protection and Anti-Money Laundering requirements. Participating SMEs will have the trust of financial institutions, leading to the much-needed financial sector support for SMEs growth,” he stated.
“The importance of this project to partner countries cannot be underestimated. While the barriers to doing business across national boundaries may be high for SMEs, digital technology has proven a leveller. It is for this reason that the partner countries have committed to harness the potential of digital technology to overcome hurdles to international trade and improve global competitiveness of businesses,” Governor Addision pointed.
Dr Addison added that facilitating of SMEs participation in the digital economy and payment systems to enhance efficiency, extending market reach and building their capacity to generate employment opportunities to boost economic growth.
Meanwhile, the BSB initiative seeks to establish a digital-hub and connector of platforms of businesses in Asia and beyond to Ghanaian SMEs and financial institutions.
With the full implementation of the BSB initiative which was first initiated in 2019, under the direction of Vice President Dr Mahamudu Bawumia and H.E. Tharman Shanmugaratnam of Singapore, Ghanaian SMEs will be able to access diversified trade opportunities as well as critical, quality ecosystem facilities such as finance, accounting, and business referrals with Singapore.
The BSB initiative also includes a global innovation hub to help FinTech companies develop additional innovative services and products. This component of the digital hub is very important for the Bank of Ghana.