Exciting news from the Inclusive Fintech Forum in Rwanda!
The Bank of Ghana and the National Bank of Rwanda have signed a Memorandum of Understanding (MoU) to establish a licence passporting framework and cross-border payment interoperability for fintech companies
What is Fintech License Passporting? Fintech license passporting enables a company licensed in one country to offer services in another without obtaining a separate license. This #streamlines operations and encourages innovation, financial inclusion, and economic growth across the continent.
This strategic partnership will:✅ Enable regulated fintechs in both countries to expand seamlessly across borders.
✅ Reduce regulatory hurdles, fostering innovation and financial inclusion.
✅ Strengthen Africa’s digital economy, particularly benefiting MSMEs.
💡 Why does this matter? This MoU aligns with the broader vision of an integrated African fintech ecosystem, where businesses can scale efficiently, payments become more seamless, and consumers enjoy greater financial access.
⭕ Examples of Countries Practicing Fintech License Passporting:1️⃣ Rwanda & Singapore Agreement: While not within Africa, Rwanda’s partnership with Singapore sets a precedent for cross-border fintech collaboration, showcasing how African nations can leverage such agreements.
2️⃣ . The SADC Fintech Framework: The Southern African Development Community (SADC) explores regional fintech harmonization, which could lead to passporting within member states like South Africa, Botswana, and Namibia.
3️⃣ East African Community (EAC): Countries like Kenya, Uganda, and Tanzania are working towards harmonizing fintech regulations, which could soon lead to passporting opportunities.
4️⃣ ECOWAS Initiatives: The Economic Community of West African States (ECOWAS) is also making strides in creating a unified regulatory environment, with countries like Nigeria and Ghana leading the charge.
🔊 Dr. Johnson Asiama, Governor of the Bank of Ghana, emphasized that this step reaffirms a commitment to an integrated African market, boosting fintech innovation and investment.
🔊 Mr. John Rwangombwa, Governor of the National Bank of Rwanda, highlighted the importance of a regulatory framework that balances risks and opportunities in cross-border payments.
This is a game-changer for fintech in Africa! 🌍🚀 What are your thoughts on this development?
#Fintech #AfricaTech #DigitalPayments #FinancialInclusion #Ghana #Rwanda #Innovation #CrossBorderPayments
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