The Graphic Business/Stanbic Bank Breakfast Meeting, held in Accra, brought together stakeholders from the banking and business sectors to discuss improving payment infrastructure, foreign exchange, regulation, and compliance for easier cross-border trade. The meeting featured Musah Abdallah, Head of Corporate and Investment Banking at Stanbic Bank Ghana, and Dr. Paa Kwesi Eduaful Abaidoo, Sustainability Manager of Miniplast Ltd, who emphasized the need for collaboration to reduce payment delays, simplify documentation, and improve access to foreign exchange.
According to Mr. Abdallah and Dr. Abaidoo, collaboration among businesses and banks can help reduce transaction costs, manage foreign exchange risks, and increase competitiveness. They suggested that banks and businesses work together to simplify documentation, digitize the submission of supporting documents, and identify suitable payment channels for different markets. This approach would enable financial institutions to design payment solutions that support businesses' long-term survival and growth.
Mr. Abdallah highlighted the progress made through initiatives such as the African Continental Free Trade Area (AfCFTA) and new payment systems, which provide a foundation for easier trade across the continent. However, he noted that more work and collaboration are required to make these systems easier for businesses to use. He also mentioned that payment systems like the Cross-Border Interbank Payment System (CIPS) and the Pan-African Payment and Settlement System (PAPSS) can help businesses overcome delays, costs, and uncertainties associated with international payments.
CIPS, an initiative powered by Stanbic Bank, offers a more direct payment route for eligible Chinese yuan transactions between Ghana and China. This system is particularly relevant to Ghanaian businesses importing from China, where payment may otherwise pass through several intermediaries. PAPSS, on the other hand, allows participating businesses to make payments in local currencies, reducing the need for multiple currency conversions and reliance on correspondent banks.
Dr. Abaidoo emphasized that simplifying the payment process can have a direct impact on business performance. He noted that payment delays can create uncertainty for both buyers and suppliers, leading to additional costs or delayed production. Dr. Abaidoo suggested that businesses can upload supporting documents electronically instead of physically submitting them, making the process more seamless.
The experts' call for collaboration and improved payment systems is expected to benefit businesses in Ghana and across the continent. By working together, businesses and banks can develop solutions that support long-term growth and competitiveness. The Graphic Business/Stanbic Bank Breakfast Meeting provided a platform for stakeholders to share ideas and explore opportunities for improving cross-border trade.
The meeting also highlighted the importance of leveraging technology to facilitate cross-border payments. With the increasing adoption of digital payment systems, businesses can now make payments more efficiently and securely. As the continent continues to integrate, the need for seamless payment systems will become even more critical.
Key points
- Collaboration among businesses and banks is crucial to making cross-border payments faster, cheaper, and more predictable.
- New payment systems like CIPS and PAPSS can help businesses overcome delays, costs, and uncertainties associated with international payments.
- Simplifying documentation and digitizing the submission of supporting documents can make the payment process more seamless.
