Bawumia Announces Next Big Agenda

…Vows To Pursue Momo Interoperability As Common Currency For Africa

After successfully rolling out the mobile money (MoMo) interoperability initiative in Ghana in 2018, Vice President Dr Mahamudu Bawumia, has disclosed his next big agenda, is to pursue a common currency for Africa via mobile money (MoMo) interoperability to enhance intra-African trade.

Dr Bawumia, who expressed strong determination to ensure the initiative to become successful, also called for support and commitment of Central Banks, as well as political will from African leaders.

The New Patriotic Party (NPP) 2024 presidential candidate believes, mobile money interoperability, is one sure way to enhance intra-African trade which he noted, is replacing the much talked about common currency agenda, whose implementation has remained in the books since 1963.

“The idea of a common currency which came in 1963 has really been overtaken by the digital payment age that today you can think about mobile money as a common currency. If we make it interoperable, we don’t need to have the common currency before we get the benefits”, Dr Bawumia has said.

Delivering a speech as a Guest Speaker at the opening of the Continental Interoperability Symposium on Friday, July 5, in Accra, Dr Bawumia underscored the enormous benefits of mobile money interoperability.

He explained countries cannot afford to necessarily wait for everyone to be ready before implementing it in the continent to rake in these benefits.

He suggested that, Ghana and Nigeria, can start, so others can follow as when they are ready.

“Ghana and Nigeria, for example, can begin with mobile money interoperability between our countries. We should not wait for the whole continent. I believe that if we are serious about it, we can work towards mobile money interoperability at the continental stage and, therefore we should move away in this regard from the micro-economic convergence criteria to digital payment convergence criteria”.

According to him, “We should not wait for everybody to proceed with mobile money interoperability at the continental level. That will be a mistake. It has to be done incrementally”.

The symposium was on the theme: “Scaling Up Interoperability — Using Mobile Money to Buy and Sell Across Africa,” brought together stakeholders and leaders aimed at improving economic integration across the continent, including the African Continental Free Trade Area Secretariat and the African Development Bank.

In the view of Dr Bawumia, a common currency in a form of MoMo interoperability, has come in handy, adding that Ghana’s case which was started in 2018, is unique and a shining example others can learn from, having successfully linked the process to both mobile networks and banks.

He explained Ghana’s own experience with MoMo interoperability, was to promote financial inclusion, stressing that the move has evidently and significantly boosted financial inclusion.

“Ghana’s experience with mobile money interoperability, launched in 2018, is a pioneering model”. Ghana was the first on the continent to introduce mobile money interoperability, not just among telcos but also between telcos and banks”, he stated.

According to him “Making mobile money interoperable across borders would allow our citizens to trade seamlessly and so this is where I believe we need to focus. One of the common problems of achieving a common currency was the difficulty of our respective countries in achieving the macro-economic convergence.

Today, you can think about mobile money as a common currency. If we make it interoperable, we don’t need to have the common currency before we get the benefits”.

While highlighting the importance of mobile money interoperability, Dr Bawumia observed that the absence of a common currency for Africa has resulted in decades of low levels of intra-African trade, puts around 13 percent for intra-African imports and 20 percent for intra-African exports over the past years indicating the absence of this aged long vision of a common currency, has hampered financial inclusion on the continent.

“The idea of a common currency which came in 1963 has really been overtaken by the digital payment age that today you can think about mobile money as a common currency. If we make it interoperable, we don’t need to have the common currency before we get the benefits.

Making mobile money interoperable allows our citizens across the continent to trade seamlessly and so this is where I believe as African countries we need to focus on. One of the common problems of achieving a common currency was the difficulty of our respective countries in achieving the macro-economic convergence”.

Dr Bawumia indicated, “I believe that if we are serious about it, we can work towards mobile money Interoperability at the continental stage and, therefore, we should move away in this regard from the macro-economic convergence criteria to digital payment convergence criteria”.

Political Will

The Vice President, called for strong political will among African leaders to drive the initiative.

“Without political will, it is not likely to be achieved. It takes a lot of effort to bring stakeholders together on a common platform,” he said.

He cited the Pan-African Payment and Settlement System, which was developed by the African Union and Afreximbank, as a significant step forward towards promoting interoperability in Africa.

Dr. Bawumia urged African countries to push for interoperability at the continental level, starting with bilateral agreements.

Digital Revolution

Mr Gabby Asare Otchere-Darko, the Executive Chairman and Founder of the Africa Prosperity Network, in his address, highlighted the benefits the continent stands to gain from the use of mobile money interoperability and calls for a strong political will and commitment of Central Banks.

“Currently, numerous mobile operators and financial institutions operate in silos, creating an environment of limited interoperability that constrains the continent’s economic potential. Key stakeholders, including Mobile Network Operators (MTN, Orange, Telecel, MT, Safaricom, Vodacom and Airtel), Financial Institutions (Commercial banks, Development banks), Regulatory Bodies (Telecom Regulators, Central Banks, National Security Agencies), Trade Associations and Governments, hold pivotal roles in this ecosystem.  Above all, we need the political will of African leaders and the courage and commitment of our central bank governors to make cross-border payment possible”, he said.

The African Prosperity Network which is organizing the symposium, he said, is dedicated to promote the speeded need for Africa interoperability and called for stakeholder’s support to achieve this dream.

He said coming together is imperative to make the adoption of interoperability standards a reality.

“The Africa Prosperity Network, supported by its valued partners, is committed to advocating the urgent need for continent-wide interoperability and makes this special appeal to all heads of government, central bank governors and national communications authorities for their support. By rallying central banks across the continent, we aim to foster a cohesive approach to achieving seamless mobile money transactions”.

Mr Otchere-Darko said, “We can unlock the full potential of mobile money and drive sustainable development across the continent. The time to act is now, and with concerted efforts, we can build a more inclusive and prosperous Africa”.

Other speakers included Minister of Communication, Ursula Owusu-Ekuful, governor of the Bank of Ghana, Dr Ernest Addision, the Director General of the National Communication Authority (NCA), Joe Anokye, first Deputy Governor of BoG, Dr Maxwell Opoku-Afari, the president of All Africa SME’S Association, Dr Ebiekure Jaspa Eradiri among others.

Source: Anchorghana.com