ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
C. Recent Innovations by BoG to support SME Growth in recent years 17.
Chairman, the prospects of SMEs’ enormous economic growth potential can only be realized if all stakeholders maintain a steadfast commitment to explore innovative policy mechanisms that can enhance the sector’s output.
In line with this, the Bank of Ghana continues to leverage its mandate to improve the payment ecosystems with modern policy tools such as the regulatory sandbox.
The introduction of the innovative regulatory sandbox tool has helped implement policy initiat ives to enhance digitalized financial services and foster economic inclusion for Ghanaian SMEs in collaboration with key stakeholders.
One such initiative is the Ghana Integrated Financial Ecosystem (GIFE), launched in June 2022 under the broader Business Sans Borders (BSB) initiative in partnership with the Monetary Authority of Singapore (MAS) and Development Bank Ghana (DBG).
This initiative started back in 2020, when the Bank signed a memorandum of understanding with its Singaporean counterpart, the Monetary Authority of Singapore (MAS) to implement a technology enabled, SME focused project known as Business Sans Borders (or Business without Borders).
As the name suggests, BSB is an intelligent global digital-hub and connector of platforms of businesses in Asia and beyond, to Ghanaian SMEs and financial institutions.
The BSB is designed to enable domestic electronic commerce platforms and SMEs users access to diversify trade opportunities as well as critical, quality ecosystem facilities such as finance, accounting, and business referrals, among others.
The BSB also includes a global innovation hub to help FinTech companies develop additional innovative services and products.
The GIFE is a comprehensive financial development programme that provides SMEs with financial and digital literacy training, as well as offers the opportunity for SMEs to obtain trusted digital credentials, enhancing their access to financial services and cross-border trade connectivity.
In essence, the programme seeks to adequately prepare local SMEs with the requisite skills, tools, and endorsements to make them trusted and capable participants in the international trade arena.
A key aspect of the GIFE initiative, which is germane to today’s dialogue, is the "intent-to-pay" credit assessment model.
This model uses digitally verified SME information to facilitate credit assessment without solely relying on traditional balance shee t strength or collateral requirements.
It relies on Application Programming Interface (API) integration with key Government and private sector data sources to perform independent data verification for the development of the trusted digital credentials.
Currently undergoing testing in the Bank of Ghana's regulatory sandbox, this model has already facilitated GHS8 million in collateral-free loans to 20 Ghanaian SMEs.
As the initiative expands, more partner financial institutions are expected to join, offer ing additional credit facilities to Ghanaian SMEs.
While still in its early stages, the GIFE initiative shows a promising potential to significantly alleviate SME financing challenges and highlights the transformative power of collaborative efforts of regulators and the private sector, leveraging innovative FinTech solutions, in overcoming financing challenges of SMEs.
Distinguished Guests, the initial success of GIFE has catalysed the evolution of the Universal Trusted Credential (UTC) concept, jointly championed by BOG and MAS, and now adopted by the United Nations Development Programme (UNDP).
This open global initiative aims to enhance access to financing for Micro, Small, and Medium-sized Enterprises (MSMEs) in emerging markets.
As advocates for the UTC concept, efforts are underway to develop UTC standards that ensure international interoperability and incorporate key global credentials such as Legal Entity Identifiers or LEI numbers.
This advancement is poised to significantly i mprove local SMEs' access to cross -border trade and financing opportunities.
Another promising initiative that the Bank is currently testing in the regulatory sandbox, is SOLV.
Promoted by Standard Chartered Bank, SOLV is a digital business -to-business (B2B) Marketplace for MSMEs.
The marketplace seamlessly facilitates access to: • a comprehensive suite of financial services such as Collateral-free invoice financing, business instalment loans, buy-now-pay-later and others, from multiple licensed financial institutions to enhance access to cheaper and efficient credit.
• Reliable & affordable professional business services such as legal, accounting, Insurance, and technology at predetermined rates from a marketplace of providers, and, • eCommerce platforms to connect buyers and sellers for growth, scale & data.
Similarly, the Bank is supporting and facilitating other SME -focused innovative initiatives by other financial institutions and remains committed to these efforts.
Let me use this opportunity to encourage other sector players to join in the efforts to develop SME-focused initiatives in furtherance of our shared objective of promoting economic growth and development.
While Ghana boasts numerous SME initiatives aimed at driving economic growth and fostering entrepreneurship, the fragmented nature of th e initiatives often hinders their collective impact.
This needs to be addressed through enhanced collaboration to streamline resources, simplify access for SMEs, harmonize policies, and ultimately maximize the effectiveness of SME support mechanisms across the country.
By fostering such coordination, Ghana can create a more cohesive and supportive environment for SMEs to thrive, contributing significantly to sustainable economic development and job creation.
On this note, let me commend the Government fo r organizing this summit and assure all stakeholders that the Bank of Ghana stands ready to support this initiative with sound regulation and efficient supervisory policies.
As discussions progress, we look forward to exploring synergies between initiatives such as GIFE and other government programs to ensure cohesive coordination and maximized impact.
Thank you for the attention.
AFRICA PROSPERITY NETWORK (APN) 2024 SYMPOSIUM ON RETAIL PAYMENT INTEROPERABILITY REMARKS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA LABADI BEACH HOTEL, ACCRA JULY 5, 2024 Your Excellency, Alhaji Dr.
Mahamudu Bawumia, Vice President of the Republic of Ghana Your Excellency, Wamkele Mene, Secretary General of AfCFTA Hon.
Ursula Owusu-Ekuful, Minister for Communications and Digitalisation Ministers of State Governor of the Central Bank of Nigeria, Dr.
Olayemi Cardoso Deputy Governor of the Bank of Ghana, Dr.
Maxwell Opoku-Afari Representatives of Regulatory Institutions Captains of Industry Distinguished Guests and Participants Ladies and Gentlemen 1.
It is a great pleasure to be back here with you offering my thoughts to Africa Prosperity Network’s signature symposium on "Scaling up Interoperability: Using Mobile Money for Cross-Border Transactions in Africa."
Distinguished guests, we are living in a time where most African’s first interaction with the financial sector may be through their smartphones.
We are also living in a time where Africa’s cross -border payments are costly, where sending $100 could end up be ing only $40 received in some of the most expensive corridor s. You would agree with me that these two scenarios present an optimal opportunity for scaling up cross -border transactions on the continent.
The good news however is that our financial future is filled with possibilities, and at the forefront of these advancements lies the interoperability of our payment systems.
Today’s gathering event marks a significant milestone in advancing the discussion on payment interoperability across the African continent.
This symposium also serves as a launchpad, catapulting us towards the realisation of the Digital Protocols of the African Continental Free Trade Area (AfCFTA) which aim to transform intra -African trade.
In the long -run, the initiative to scale up cross -border interoperability would require cooperation, establishm ent of a transparent, secure, and trusted digital trade ecosystem, and promotion of digital inclusion for underrepresented groups and micro, small, and medium-sized enterprises in the African Union member states.
Distinguished Guests, at the last African Prosperity Dialogue (APD) in January this year, I aligned this initiative with the broader objective of AfCFTA.
That is, to increase intra -African trade from 15% in 2019 to 50% by 2045, and to create a single continental market for goods and services with a combined annual output of approximately US$2.5 trillion across member states of the African Union.
Against this background, the need for a robust framework that enables seamless cross -border payment in Africa has remained central to most recent policy, development, and financial inclusion discussions.
This underscores the enormous constraint faced on the continent and the quest for concrete actions to promote cross-border payment systems to achieve our shared aspirations.
Indeed, the recently held 3i Africa Summit in Accra reaffirmed the consensus among market participants and policymakers to work towards the achievement of seamless cross -border payments in Africa.
However, the Summit also highlighted a significant gap between market expectations and current policy frameworks and emphasised the need for concrete and concerted efforts towards eliminating these misalignments.
Distinguished Guests, Africa has made giant strides in FinTech development and regulation, particularly with its leadership role in the mobile money technology space.
Therefore, the concept of interoperable mobile money systems holds an enormous potential t owards the establishment of a comprehensive cross-border payment interoperability in the short -medium term.
An efficient cross-border payment interoperability system can deliver seamless payments between buyers and sellers across African countries, as well as provide extensive inclusivity in expanding access to payment and financial services for the youth, vulnerable groups, and striving entrepreneurs.
This notwithstanding, achieving cross -border interoperable mobile money systems would require harmonised regulatory frameworks, consistent technical standards, and robust infrastructure.
In addition, strong public - private partnerships, involving mobile netw ork operators, financial institutions, FinTechs, and regulators would address technical challenges and ensure regulatory compliance.
Other strategies that would ensure the adoption and long -term system reliability of cross -border payment interoperability i nclude customer education and trust, scalability, and system sustainability, as well as inclusive access, which is essential for all segments of society, including rural and underserved populations.
Policy coordination and governance are also essential for smooth operation and compliance in a multi -country environment.
By implementing these strategies, African countries can facilitate efficient cross-border transactions and promote financial inclusion to stimulate economic growth.
On a more positive note, the foundational elements necessary to implement this idea of cross -border payment interoperability are partly in place in some African countries.
These include regulatory sandbox programmes, progressive regulatory frameworks, and a dynamic FinTech sector, eager for growth opportunities.
However, what may be lacking is collaboration among stakeholders.
Effective collaboration between regulators, financial institutions, mobile money operators, FinTech innovators, and other stakeholders is crucial to address technical challenges, ensure regulatory compliance, build trust, and drive the scalability and susta inability of cross -border mobile money and other interoperability initiatives.
By fostering a collaborative ecosystem, Africa can harness its FinTech advancements to unleash the full potential of interoperable mobile money systems, benefiting both individu als and countries across the continent.
On this note, I would like to extend my sincere thanks to the organisers of this symposium for their dedication towards the launch of this initiative.
Your commitment to foster collaboration and innovation in this crucial area is commendable.
Permit me to a lso add that the initiative to scale up cross border payment interoperability aligns with the broader financial sector digitisation and inclusion agenda of the Bank of Ghana.
It is therefore our hope that other central banks on the continent will join in and contribute to its realisation.
Thank you and I wish you all fruitful discussions.
Joint IMF-MOF-BOG Press Briefing Short Statement by Governor of Bank of Ghana, Dr Ernest Addison on Completion of the Second Review of US$3 billion, 36- month Extended Credit Facility (ECF) Arrangement Thank you very much Stephane.
Let me start by saying that the Ghanaian Authorities have made unprecedented efforts to address macroeconomic imbalances.
Today, the macroeconomic outlook is dramatically improving and there are clear signs of economic stabilisation ; growth is surprising on the upside, inflation has fallen significantly, fiscal policy is consolidating, and foreign exchange reserve build-up has been robust.
First and foremost, on inflation, we saw the trajectory in 2023 with the sharp fall from 54.1 percent at the end of 2022 to 23.1 percent at the end of 2023.
This was achieved with very effective monetary policy operations which were very costly to the balance sheet of the Bank but very necessary for the public good.
The pace of disinflation, however, has not kept up in the first four months of 2024 and has only begun to fall significantly at the end of May.
We expect this to continue through till the end of the year under the tight monetary and fiscal policies, stable exchange rate and the expectation of improved food supply during the harvest season.
A key determining factor will be the behaviour of the exchange rate.
The improving economic fundamentals, the strong accumulation of foreign exchange reserves under the gold for reserve programme, and the agreement with the Official Creditor Committee and sovereign bondholders on debt restructuring , should all in concert provide the basis for stability in the exchange rate going forward.
With a successful conclusion of the second review, we need to begin to think of the third review of the program me and beyond and take advantage of the reform momentum.
Steadfastness and commitment will be needed from now till the end of the year to see through all the structural reforms envisaged under the program , including the signing of the Memorandum of Understanding between the Ministry of Finance and the Bank of Ghana on the recapitalisation of the central bank.
This will strengthen the central bank’s credibility to effectively deliver on its reforms.
I must at this point say that on a year-to-date basis (June 27), the Bank has accumulated US$917 million, ahead of the $463.8 million IMF programme targets.
The Bank of Ghana will continue to work closely with the banks to ensure that they are well capitali sed to deliver on their mandate to support growth .
Plans to recapitalise the banks are being implemented to strengthen financial stability.
Most of the banks, however, are well ahead of their recapitali sation plans and we are confident that the sector will continue to remain sound, liquid and profitable.
To conclude, inflation is still high at 23.1 percent relative to our end -year target of 15±2 percent, despite the sharp improvement.
The rest of the year will be challenging but we will remain resolute , working with the M inistry of Finance and the IMF to ensure that the improving outlook is sustained.
We want to thank all stakeholders who have worked with us collaboratively to get us to this point.
July 1, 2024
OPPORTUNITY INTERNATIONAL SAVINGS AND LOANS COMPANY LIMITED 20TH ANNIVERSARY DINNER REMARKS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA 7TH JUNE 2024 LABADI BEACH HOTEL Board and Management of Opportunity International Savings and Loans Limited, CEOs of Savings and Loans Companies, The CEO of the Ghana Association of Savings and Loans Companies, Staff of Opportunity International Savings and Loans Limited, Invited Guests, Distinguished Ladies and Gentlemen, Good evening.
It is my pleasure to be here tonight to celebrate a truly remarkable milestone, the 20th anniversary of Opportunity International Savings and Loans Limited (OISL).
Two decades is a long time in any industry and for two decades, Opportunity International ha s been empowering the ambitions of its customers by providing them with financial solutions and training.
This is in line with Bank of Ghana’s policy imperative of financial inclusion, with our policy focus on providing access to basic financial services, allowing people to carry out basic banking functions.
For two decades, your customers have trusted you to finance and provide them with access to several financial services.
Today, we celebrate the consistent dedication and resilience that have shaped this institution into the financial powerhouse it is today.
I therefore congratulate the Board, Senior Management, and staff for this great feat.
Ladies and Gentlemen, we all acknowledge the amazing journey that Opportunity International Savings and Loans Limited has made since it first opened its doors 20 years ago.
Over these years, and while maintaining its core vision to achieve a poverty -free life for its customers, OISL has expanded from initially operating as a unit entity to currently operating across ten (10) out of the sixteen (16) regions in the country.
They have served countless people, families, and companies, and ultimately helped to promote financial inclusion and sustainable growth across the country.
Indeed, the success of OISL extends beyond the size of the balance sheet to the positive impact on livelihoods of our people.
Distinguished guests, measuring success in business extends far beyond figures on a balance sheet.
Over the past two decades, Opportunity International has equipped households and businesses with tools to improve their income generating capacities, and in turn provided some financial stability for several people.
In addition, your contribution to the advancement of financial inclusion is invaluable.
The commitment shown towards the integration of clients at the base of the pyramid into mainstream financial services with innovative products that give aspiring business owners the chance to obtain financing to generate employment opportunities in various communities is commendable.
Particularly, your exhibitions under the Accra/Kumasi Kayayie Project and numerous financial literacy forums have been very useful to many households.
Ladies and Gentlemen, let us also acknowledge Opportunity International Savings and Loans Limited’s accomplishments.
Among them is being named "Chartered Institute of Marketing Ghana’s (CIMG) Savings and Loans Company of the Year" in 2019 and 2020.
Opportunity International also won the Savings and Loans Company Award of the Year for three consecutive years in 2018, 2019, and 2020, and was inducted into the Ghana Business Awards Hall of Fame in 2022 and 2023.
These accomplishments are indeed worth celebrating.
In terms of performance, the key Financial Soundness Indicators for Opportunity International are largely satisfactory, with both Capital Adequacy Ratio (CAR) and Cash Reserve Requirement (CRR) within the regulatory limits.
While Opportunity International' s accomplishments over the years are laudable, it is important to note that the main goal of the savings and loans subsector is to provide avenues to bank the ‘unbanked’ segments of the population.
So, I will entreat you to enhance the new and inventive pr oducts and services to meet this need and help deepen financial inclusion in the country.
In furtherance of this, the Bank of Ghana remains fully committed to its supervisory role and will ensure that all financial institutions adhere to regulatory requirements and guidelines to foster trust and confidence in the sector.
The Bank of Ghana has been engaging with regulated entities regularly over governance and assurance functions, in its quest to remain vigilant to ensure stability of the financial sector.
Strong risk management, Compliance with prudential rules, proper internal audit functions r emain crucial to ensure that regulated financial institutions operate soundly, safely, ethically and within regulatory and legal boundaries.
Issues such as poor credit underwriting standards, high -risk clients, weak risk management procedures, inadequate monitoring systems, and other factors have all contributed to the increased Non -Performing Loans (NPLs) in the subsector over the last few yea rs.
I must commend the Board, Management and Staff of Opportunity International of scoring high marks and setting high standards in its Corporate Governance.
We urge other Boards and Managements of the savings and loans subsector to emulate the good corporate governance practices of Opportunity Savings and Loans.
Distinguished Ladies and Gentlemen, looking ahead, the financial landscape will undoubtedly continue to evolve, and savings and loans companies should be well -positioned to adapt and navigate these changes.
Technological advancement has broadly shifted banking operations to digital platforms on mobile devices.
Savings and loans companies’ subsector can therefore take advantage of these new platforms through collaboration with banks and telecommunication companies to broaden their scope of operations and service offerings to the benefit of our economy .
They must however be aware of the issues of cybersecurity and operational risks that arise therefrom.
Cyber attacks such as malware , phishing scams and ransomware attacks can disrupt operations, compromise systems and affect data integrity.
We encourage Savings and Loans Companies to take advantage of the Financial Industry Command Security Operations Centre (FICSOC) set up by the Bank of Ghana to address these cyber security risks.
As a leader in the financial sector, paying attention to the issue of sustainability, climate-related financial risk and green finance presents a strategic opportunity.
Let me therefore take this opportunity to encourage the Board, Management and Staff of OISL to pay close attention to issues of sustainability, climate -related financial risks, and green finance which has become part of the global agenda.
Presently, there are existing opportunities such as green funding to support lending activities within the banking system.
The Bank of Ghana has recently issued a draft Directive on Prudential Disclosures of Climate Related Financial Risks, and I urge you to review and comply with the recommendations under the directive.
Once again, distinguished guests, join me in congratulating Opportunity International Savings and Loans Company Limited on the milestones reached during the past 20 years of existence as a savings and loans company in Ghana.
I wish the Board of Directors, management, employees, and clients continued success in the years to come.
Happy 20th Anniversary!
Thank you and may God bless us all.
3i AFRICA SUMMIT OPENING PLENARY WELCOME REMARKS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA 13TH MAY 2024 ACCRA INTERNATIONAL CONFERENCE CENTRE Your Excellency, Nana Akufo-Addo, President of the Republic of Ghana Your Excellency, Dickon Mitchell, the Prime Minister of Grenada Your Excellency, Wamkele Mene, the Secretary General of AfCFTA Honourable Minister of Finance, Dr Mohammed Amin Adam Honourable Ministers of State Central Bank Governors Central Bank Deputy Governors Members of the Bank of Ghana The Chief Executive Officer of Development Bank Ghana Representatives of Elevandi Chief Executive Officers of Banks and other Financial Institutions Chief Executive Officers and Founders of Telcos, FinTechs, and Technology Chambers Distinguished Invited Guests and Participants Ladies and Gentlemen Good afternoon and Akwaaba to Ghana, 1.
It is my greatest pleasure to welcome you all to the inaugural ceremony of the 3i Africa Summit here in Accra .