MAS, BoG and DBG to develop Integrated Financial Ecosystem to enhance MSMEs growth

As part of efforts to enhance the financial capabilities for micro, small and medium enterprises (MSMEs) through trade and financial services, the Monetary Authority of Singapore (MAS), Bank of Ghana (BoG) and Development Bank Ghana (DBG) have signed a Memorandum of Understanding to develop the Ghana Integrated Financial Ecosystem (GIFE). The development of GIFE is aimed at generating opportunities for trade and financial services cooperation between Singapore and Ghana while the integrated financial model can serve the Asia-Africa SME trade corridor more broadly. In a joint statement issued on November 4, 2022, it explained that the GIFE will also offer an open digital infrastructure for MSMEs in Ghana and Singapore in four key areas. These include; the SME Financial Empowerment Programme to assist MSMEs build foundational digital financial literacy skills and understanding of cross-border financial services. Another area of focus will allow MSMEs in Ghana and Singapore to develop business-to-business e-commerce platforms to expand international business connections, particularly in Asia and Africa. Also, the DBG and its partners from financial institutions will provide digital trade finance and guarantees for eligible MSMEs through a digital platform while, the MAS, BOG, and DBG will develop financial trust frameworks to assess creditworthiness for financing. Bank of Ghana Governor, Dr. Ernest Addison, in his remarks was optimistic that the MoU will enhance MSME contribution to economic growth in line with government’s broader economic transformation goals. Chief FinTech Officer of the Monetary Authority of Singapore said the GIFE will provide a platform that could “potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap into based on their needs.” Kwamina Duker, who is the Chief Executive Officer of DBG, said the role of SMEs in Ghana’s economy remains crucial and therefore said the GIFE programme will further strengthen DBG’s ability to catalyse SME growth by ensuring financial solutions are provided for them to achieve their full potential. “SMEs are a key pillar of Ghana's economic resilience, prosperity, and international competition, so I'm optimistic that our journey to unlock their potential will yield excellent results for our people and country,” Mr Duker noted. Meanwhile, Chief Executive Officer of ANEXT Bank, Ms. Toh Su Mei on her part said the decision to co-create the FTC trust data framework is geared toward promoting more trust amongst businesses and financial institutions globally. “It allows us to make financial services accessible and effortless for more SMEs as growing businesses can get access to global trades, and be more resilient against macroeconomic market disruptions," she concluded. MA/FNOQ Watch the latest edition of BizTech below: