singapore fintech festival 2020 keynote address by dr. ernest addison governor, bank of ghana december 7, 2020 the managing director, monetary authority of singapore, the singapore fintech association, captains of industries and financial technology companies, distinguished guests, distinguished ladies and gentlemen, 1. it is a great pleasure to deliver the keynote address for the session on ‘ digitization of the afro - asian small and medium enterprises ( smes ) trade corridor – a multimillion economic zone ’ at this year ’ s singapore fintech festival. i would like to thank the organizers for choosing ghana as a satellite host, which among others, endorses the country ’ s growing technological capabilities and strong fintech industry. 2. ladies and gentlemen, trade relations between africa and asia has witnessed tremendous growth over the past decade. this phenomenon, led by smes, has leapfrogged with technological advancement and the emergence of digital trade channels. currently, trading activities between the two continents are shifting to ecommerce platforms due to enhanced access to the internet and adoption of digital products fostered by fintechs. 3. indeed, the ongoing digital transformation is disrupting existing modes of trade and business models including, the deployment of resources, and organization of production, marketing and trading of goods and services. this disruptive process, which is felt at every stage of trade relations, has become a necessary enabler for smes in international trade. 4. ladies and gentlemen, smes in ghana, similar to others across the african continent, contribute significantly towards economic growth through provision of goods and services, creating job opportunities, and helping with poverty reduction. notably, the sme sector is dominated by women and the youth, with vast opportunities to harness economic potential. according to the world bank estimates, about a third of all smes in africa are owned by women. 5. these contributions notwithstanding, smes across africa face severe constraints that stifle their active participation in international trade. over time, however, the growing adoption of digital technology by government, businesses, and households are gradually opening opportunities for smes to explore affordable digital alternatives to actively participate in the global value chains on trade, production, and investments. 6. across africa, mobile money adoption is the game changer in promoting financial inclusiveness and enhancing economic growth. for instance, the increasing use of technology has engineered innovative, efficient and competitive financial products and services in ghana ’ s payment service space. these outcomes are underpinned by sound regulatory frameworks and

high school used to equip the average worker with sufficient skills to last a lifetime. that is no longer true, as evidenced by community colleges being inundated with workers returning to school to acquire new skills and on - the - job training being expanded and upgraded by a large proportion of american business. not unexpectedly, greater worker insecurities are creating political pressures to reduce the fierce global competition that has emerged in the wake of our 1990s technology boom. protectionist measures, i have no doubt, could temporarily reduce some worker anxieties by inhibiting these competitive forces. however, over the longer run such actions would slow innovation and impede the rise in living standards. they could not alter the eventual shifts in production that owe to enormous changes in relative prices across the economy. protectionism might enable a worker in a declining industry to hold onto his job longer. but would it not be better for that worker to seek a new career in a more viable industry at age 35 than hang on until age 50, when job opportunities would be far scarcer and when the lifetime benefits of additional education and training would be necessarily smaller? to be sure, assisting those who are already close to retirement in failing industries is an imperative. but that can be readily accomplished without distorting necessary capital flows to newer technologies through protectionist measures. more generally, we must ensure that our whole population receives an education that will allow full participation in this dynamic period of american economic history. these years of extraordinary innovation are enhancing the standard of living for a large majority of americans. we should be thankful for that and persevere in policies that enlarge the scope for competition and innovation and thereby foster greater opportunities for everyone.