BoG’s DPI project to shape Africa’s future payments blueprint

Bank of Ghana Governor Dr. Ernest Addison introduced the Digital Payment Initiative (DPI). He described it as a platform to improve interoperability in financial systems. The DPI will enable digital trade and enhance financial inclusion through scalable pilots.

Dr. Johnson Asiama, representing the Bank of Ghana, spoke at the opening session. He stated that this initiative aims to modernize Africa’s cross-border payment system. It is a central bank-led approach developed with fintechs and financial institutions.

The DPI comes at a time when mobile money has transformed finance in Sub-Saharan Africa. According to GSMA’s latest report, the region holds 53% of global mobile money accounts. It also accounts for two-thirds of global transaction value, exceeding US$1.1 trillion in 2024.

Karim Dia from GSMA noted that mobile money supports intra-African remittances and trade. It processes US$3 million per minute but faces challenges like fragmented regulations and limited interoperability.

The DPI project seeks to address these issues by harmonizing regulations and scaling innovation through pilot programs. Dr. Asiama emphasized that achieving a digitally integrated Africa requires coordinated action from both public and private sectors.

He urged stakeholders to focus on actionable outcomes rather than just discussions. The DPI aligns with African Continental Free Trade Area (AfCFTA) goals by enabling faster, cheaper cross-border payments.

It also supports the Pan-African Payment and Settlement System (PAPSS), which aims to reduce reliance on foreign currencies for trade within Africa.

Vitaliy Kramarenko from the International Monetary Fund welcomed the DPI initiative. He highlighted digital innovation's role in transforming Africa's economy but warned about macroeconomic pressures affecting growth.

Kramarenko pointed out that while mobile money use is high, overall digital infrastructure is lacking. Internet access stands at only 33%, while electricity access is at 50% across sub-Saharan Africa.

He called for innovative infrastructure investment models like public-private partnerships to drive transformation. Policymakers should prioritize digital finance innovation and regional trade facilitation as key reform levers.

To support this agenda, the IMF collaborates with central banks to enhance digital payment systems focused on inclusion and reducing transaction costs. Kramarenko mentioned upcoming IMF research on central bank digital currencies and crypto assets.

He urged governments to create strong policy frameworks for managing emerging risks associated with these technologies. The DPI project aims to serve as a model for other African economies with scalable pilot programs across borders.

It represents a new model of digital public infrastructure built on collaboration among regulators, central banks, and fintechs. Dr. Asiama concluded by calling for action where policy enables innovation in Africa's journey toward becoming a digital financial powerhouse.