The Bank of Ghana and the National Bank of Rwanda have signed a Memorandum of Understanding to implement a fintech licence passporting framework. This initiative will streamline cross-border operations and enhance payment interoperability for regulated fintechs in both nations. The agreement aims to foster innovation and economic growth while simplifying regulatory processes.
The Bank of Ghana and the National Bank of Rwanda recently formalized their collaboration by signing a Memorandum of Understanding (MoU) on February 25, 2025, during the Inclusive Fintech Forum in Rwanda. This agreement introduces an innovative fintech licence passporting framework, which facilitates cross-border operations and enhances payment interoperability for regulated fintech organizations in both nations. The representatives from both central banks aim to promote financial innovation and growth while minimizing regulatory burdens for fintech companies looking to expand their services.
The licence passporting framework allows fintech entities licensed in Ghana or Rwanda to operate more freely across borders, streamlining their ability to offer services in each other’s jurisdiction. This progressive initiative highlights the commitment of both countries to create a more integrated African financial market that supports technology-forward solutions. Moreover, it signifies a strategic move towards fostering a conducive environment for fintech innovation, particularly for micro, small, and medium enterprises (MSMEs) that could benefit significantly from enhanced financial services.
Dr. Johnson Asiama, the Governor of the Bank of Ghana, emphasized the importance of this agreement by stating, “The signing of this memorandum of understanding 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.”
Similarly, Mr. John Rwangombwa, Governor of the National Bank of Rwanda, noted, “We recognize 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.” This sentiment underscores the shared understanding between both nations that regulatory alignment is essential for facilitating effective financial operations.
In conclusion, the formal agreement between the Bank of Ghana and the National Bank of Rwanda signifies a pivotal moment in fostering cross-border fintech operations. By implementing the fintech licence passporting framework, both countries aspire to create a flourishing payment ecosystem that encourages innovation, ultimately enhancing economic opportunities for citizens and enterprises alike. This collaboration not only strengthens the fintech landscape in Ghana and Rwanda but also sets a precedent for cooperation across the African continent.
The MoU signed between the Bank of Ghana and the National Bank of Rwanda establishes a licence passporting framework that promotes cross-border fintech operations. This initiative is poised to drive financial innovation, particularly for MSMEs, while reducing regulatory complexities for fintech companies. Both governors acknowledge the need for a robust regulatory framework to balance risks and opportunities, ultimately leading towards a more integrated African financial market.
Original Source: techafricanews.com
