The Sustainability Manager of Miniplast Limited, Dr Paa Kwesi Eduaful Abaidoo, has emphasized the need for digital submission of supporting documents for foreign payments to make cross-border transactions more efficient. Speaking at the third-quarter Graphic Business/Stanbic Bank Breakfast Meeting in Accra on September 22, Dr Abaidoo highlighted the challenges businesses face in international trade due to payment delays. The meeting, themed “Moving Money. Moving Trade. Moving Ghana: Making it easier to sell, buy and pay across borders”, brought together stakeholders to discuss financial challenges in international trade.
Dr Abaidoo noted that allowing businesses to upload required documents from their offices could significantly reduce the time spent processing foreign payments. Instead of physically submitting documents to banks, electronic uploads can make the process more seamless. This, he believes, can help businesses receive supplies on time, get their goods delivered, and manage their costs effectively. By reducing payment delays, businesses can avoid additional costs that may be passed on to consumers.
The Sustainability Manager of Miniplast Limited explained that payment delays can affect suppliers' ability to begin production or deliver goods, leading to extra costs. Dr Abaidoo suggested using more direct payment routes where available to reduce delays. He cited the Cross-Border Interbank Payment System (CIPS) as an option for eligible China-related transactions, particularly those in Chinese yuan. This can help make payments faster, cheaper, and more predictable.
Dr Abaidoo also mentioned the Pan-African Payment and Settlement System (PAPSS) as a solution for intra-African trade. This system can help businesses overcome some of the delays, costs, and uncertainties associated with international payments. By using direct payment routes and digital document submission, businesses can trade more efficiently. Dr Abaidoo likened payments through multiple banking intermediaries to traveling through several transit airports, emphasizing the need for direct routes.
According to Dr Abaidoo, faster, cheaper, and more predictable payments can significantly impact businesses. He stated that if payments can be processed faster, cheaper, and more predictably, it will not only move money but also move trade and help grow Ghana. This can benefit businesses, whether in local markets like Makola or international markets like Thailand.
Dr Abaidoo advised businesses to consider the destination, currency, and speed required when choosing a payment channel. By selecting the most suitable option, businesses can ensure that their payments are processed efficiently. This can help reduce uncertainty over when funds will reach the recipient and make international trade more manageable.
The Graphic Business/Stanbic Bank Breakfast Meeting provided a platform for stakeholders to examine the financial challenges facing businesses engaged in international trade. The discussion highlighted the need for efficient payment systems to facilitate cross-border transactions. Dr Abaidoo's insights emphasized the importance of digital document submission and direct payment routes in making international trade more efficient.
Key points
- Digital submission of supporting documents can help cut payment delays in cross-border transactions.
- Using direct payment routes and digital document submission can make international trade more efficient.
- Choosing the right payment channel based on destination, currency, and speed is crucial for businesses.
