CBN is looking for solutions to enhance mobile money and cross-border payments under AfCFTA.
Some of the content of the financial inclusion newsletter which the Central Bank of Nigeria, CBN released includes its role to facilitate cross-border payment under the African Continental Free Trade Area, AfCFTA.
The role of the CBN in improving cross-border payments and mobile money
As the Central Bank of Africa’s largest economy, the CBN has an important role to play in democratizing cross-border payments. The creation of Payment Service Banks (PSB) which allows mobile network operators to provide basic financial services is commendable.
- Africa building payment platform for trade to sustain AfCFTA before common currency
- CBN, Afreximbank to utilise PAPSS to improve trade and payment
The existing SIM registration database and KYC automatically support the onboarding of all mobile phone owners, solving the identity management problem.
The Bank may wish to consider revising its regulatory requirements around money transfer licensing, capital requirements in order to further reduce the barriers to entry of new entrants (CENFRI, 2019).
Easing these requirements will enhance the entry of more fintech companies into the cross-border payments space leading to competition and reduced fees for customers.
- Afreximbank surveys and discusses recapitalization, $33.6 billion SDR, fixing trade finance
- Qualifying for loans, credit card in Nigeria
Leveraging new models of communication such as social media will also go a long way in increasing awareness of the related initiatives for a more inclusive atmosphere for policy formulation and implementation.
AfCFTA
The AfCFTA is currently looking for a workable payment solution for trade under AfCFTA. A digital platform will help make trade under the AfCFTA more efficient and less costly.