The Monetary Authority of Singapore (MAS) has linked with two Ghanian banks to develop the Ghana Integrated Financial Ecosystem.
MAS will team with the Bank of Ghana and Development Bank Ghana to develop the GIFE program.
GIFE aims to enhance financial capabilities and access for MSMEs in Ghana as well as generate greater opportunities for trade and financial services cooperation between Singapore and Ghana.
MAS said GIFE will offer an open digital infrastructure for MSMEs in Ghana and Singapore in four notable areas. The SME Financial Empowerment Program will help firms build foundational digital literacy skills and gain a good understanding of cross-border financial services.
In addition, MSMEs in Ghana and Singapore can expand their international business connections in Asia and Africa, through a network of business-to-business e-commerce platforms.
As well, DBG and partner financial institutions will provide digital trade finance and guarantees for eligible MSMEs through a digital platform, while MAS, BOG, DBG and financial institutions will jointly develop financial trust frameworks to assess credit worthiness for financing by enabling financial institutions to use alternative data sets, such as the track record of successful payments to suppliers and tax payments to relevant authorities.
MAS chief FinTech officer Sopnendu Mohanty said, “MAS has worked closely with Bank of Ghana since the announcement of the Financial Trust Corridor in 2020. The GIFE is an important step to foster closer collaboration between the two central banks and important emerging markets. The GIFE is a rethink to potentially leapfrog traditional financial inclusion approaches with combined support mechanisms powered by smarter data that MSMEs and financial institutions can tap on based on their needs.”
MAS recently launched Ubin+, an expanded collaboration on a cross-border foreign exchange using wholesale CBDC.
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