In a significant move to strengthen financial technology operations across Africa, the Bank of Ghana and the National Bank of Rwanda have signed a Memorandum of Understanding (MoU) to introduce a licence passporting framework and cross-border payment interoperability for regulated financial technology (fintech) companies.
The agreement was signed on February 25, 2025, at the Inclusive Fintech Forum held in Rwanda, with the Governor of the National Bank of Rwanda, Mr. John Rwangombwa, and the Governor of the Bank of Ghana, Dr. Johnson Asiama, in attendance alongside other key officials.
Objective
The licence passporting framework is designed to simplify cross-border operations for regulated fintech companies licensed by the central banks in the two countries.
This means fintech companies licensed in Ghana can now operate in Rwanda without having to undergo complex re-licensing processes, and vice versa.
The initiative will enable fintechs to expand their services seamlessly across both countries; encourage innovation in financial services;promote financial inclusion for underserved populations and boost economic growth for Micro, Small, and Medium Enterprises (MSMEs) in both countries.
Significance
Speaking at the signing ceremony, Dr. Johnson Asiama, Governor of the Bank of Ghana, expressed optimism about the agreement's impact on Africa's digital financial ecosystem.
“This MoU reaffirms our commitment to the broader idea of an integrated African market which holds the prospects of enhancing the livelihoods of our citizens and creates opportunities for an environment that encourages fintech innovation and investment, ultimately benefiting our economies, particularly MSMEs,” he said.
Mr. John Rwangombwa, Governor of the National Bank of Rwanda, on his part emphasised the importance of balancing innovation with regulatory oversight.
“We recognise that creating an effective cross-border payment infrastructure requires more than just innovation. It demands a forward-fitting regulatory framework that balances risks and opportunities,” he noted.
Benefits
The agreement is expected to simplify cross-border payments between Ghana and Rwanda;foster collaboration between fintech companies in both countries;attract foreign investment into the fintech ecosystem;improve access to digital financial services for underserved communities and support the objectives of the African Continental Free Trade Area (AfCFTA) by enabling smoother financial transactions across borders.
Africa’s Digital Economy
Both countries have expressed optimism that this strategic partnership will contribute to the broader vision of digitising Africa’s financial systems and fostering economic development.
The move aligns with the African Union's Digital Transformation Strategy (2020-2030), which seeks to harness technology to promote inclusive growth and sustainable development.
Milestone
The MoU between the Bank of Ghana and the National Bank of Rwanda marks a significant milestone in Africa’s fintech evolution. It not only paves the way for seamless cross-border payment systems but also encourages innovation, financial inclusion, and economic cooperation between the two nations.
As the African fintech landscape continues to expand, such collaborative agreements are expected to set the tone for a more integrated and prosperous digital economy across the continent.
