Dr. Ernest Addison (middle), Nana Dwemoh Benneh (2nd right) and other speakers at the climax
ERNEST Addison, Governor of the Bank of Ghana, has asserted the bank’s conviction that payments systems will be key to the success of the African Continental Free Trade Area (AfCTA).
Speaking on the final day of the Ghana Academy of Arts and Sciences (GAAS) 2022 Public Forum, Dr. Addison said a supportive payment and settlement system can be used as a strategic tool to enhance and facilitate the African regional integration drive, increase competitiveness, and improve Africa’s position in the international financial system.
He also said a strong and well-regulated African financial infrastructure could deepen the benefits of intra-regional trade, eliminate the use of hard currency for settlement, improve liquidity management of firms and reduce transaction costs.
The forum, an annual event by the GAAS, is part of efforts to bridge the gap between academia, practice and the general public. This year’s sessions was sponsored by UMB, a leading indigenous Ghanaian bank, as part of its 50th anniversary celebrations.
Other speakers included Prof. Ernest Kofi Abotsi, Prof. Kwadwo Appiagyei-Atua, David Ofosu-Dorte and Beatrice Chaytor, Head, Trade in Services Division, AfCFTA, John Apea, CEO of Etranzact and Nana Benneh, CEO of UMB.
Dr. Addison’s presentation was preceded by a lecture by Professor Ebo Turkson of the Department of Economics at the University of Ghana, who focused on the need for heavy investments in hard and soft infrastructure, to cut down the cost of intra-African trade.
With the aid of tables and graphs, Prof. Turkson illustrated how it was cheaper for a Ghanaian business to trade with Europe, arguing that without infrastructure, African trade would not work.
Nana Dwemoh Benneh, in a remark, indicated that syndication was critical for Ghanaian banks to partake in the financing deals critical to building the soft and hard infrastructure needed to facilitate intra-African trade.
He further stated that Ghana had an advantage, as structures like the Development Bank and the EXIM Bank provided the needed muscle for such syndications.
Prof. Opoku-Nti, Vice President of the Academy, expressed GAAS’ profound appreciation to UMB for sponsoring the forum.