Bank of Ghana and Monetary Authority of Singapore sign memorandum of understanding to promote SMEs

The Bank of Ghana has signed a Memorandum of Understanding (MOU) with the Monetary Authority of Singapore (MAS) to collaborate in promoting Small and Medium-sized Enterprises (SMEs) through the use of technology.

This follows previous commitments between the governments of Ghana and Singapore, which culminated in an understanding between the two countries to work together and explore the use of technology to improve their economies for global competitiveness.

A statement from the Bank of Ghana said that the MOU aims to develop the ability of SMEs to harness technology for efficiency, market discovery and accessibility to global markets.

Importantly, the partnership is expected to help seamlessly integrate each country’s SME ecosystem into the global trade value chain, while introducing innovative FinTech solutions to improve SMEs’ access to financial and digital tools. .

The BOG and MAS will also collaborate to develop a trust-building financial trust broker (FTC) to promote trade between companies and financial institutions in Ghana and Singapore.

This MOU is important to Ghana’s development agenda because of the important contribution of SMEs to the provision of goods and services, job creation, and ultimately economic growth.

In particular, the majority of SMEs are owned by women, represent the majority of companies and contribute significantly to the country’s Gross Domestic Product (GDP).

The statement said that enhancing the market reach of SMEs through digitization would therefore promote gender-related employment opportunities, provide affordable access to finance and boost economic growth.

Ghana is currently a satellite host of the 2020 five (5) day Singapore Fintech Festival (SFF) which started on December 7, 2020 and will end on December 11, 2020.

Indeed, the choice of Ghana as a satellite host is a
support of Ghana’s growing technological capabilities and nascent Fintech industry.

Given that Singapore is a major tech hub in Asia and Ghana, an emerging FinTech powerhouse in Sub-Saharan Africa, as well as hosting the African Continental Free Trade Area (AfCFTA) Secretariat, it makes this relationship meaningful.

“The anticipated earnings from this MOU will have a positive impact on AfCFTA and underscore the
position itself as a gateway to Africa, “the statement added.