African Central Banks (ACBs) and other stakeholders are seeking ways to simplify trading among West African countries through the linking of payment infrastructure called Real Time Gross Settlement (RTGS) System.
The move is aimed at addressing the challenges faced by the sub-region where member countries do not trade with one another.
The four countries in the West African region have the Real Time Gross Settlement, which is a platform that allows for easy transfer of money or securities from one bank to another, but they are not linked together.
Dipo Fatokun, director, banking and payments system, Central Bank of Nigeria (CBN), yesterday called for the collaboration of sub-regional government to ensure the integration of payment infrastructure.
“Just as we have the Nigeria Inter-Bank Settlement System in Nigeria (NIBSS) and Ghana Inter-Bank Settlement System (GIBSS) in Ghana they also need to be integrated so that the retail payment can also work together,” Fatokun said, on the sideline of SWIFT business forum, West Africa held in Lagos.
Corroborating Fatokun, Joseph Tetteh, director of banking, Bank of Ghana, stressed on the need for harmonisation of regulation and a platform that would enhance intra-African trading.
Also speaking at the event, Abdoulaye Barry, director of financial integration, West African Monetary Institute (WAMI), said the institute had developed real time gross settlement system to facilitate transaction between central banks and commercial banks.
“We have completed the project in four countries and the projects are working. We just finished in Guinea and Liberia. The next phase is inter-linking of payment system in West Africa,” Barry said.
In his welcome note, Hugo Smit, head of sub-Saharan Africa, SWIFT, said the sustained growth of African economies was well reflected in SWIFT payments volumes. In the year to date, SWIFT traffic volumes have increased 13.4 percent in Africa, far higher than SWIFT global growth of 6.4 percent.
