High transaction costs choking SME growth in Africa – BoG Deputy Governor

Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, has cautioned that high transaction costs arising from inefficient and fragmented payment systems are severely undermining the growth of small and medium-sized enterprises (SMEs) across Africa.

She noted that expensive and poorly integrated payment structures continue to impose a heavy burden on small businesses, women traders, and young entrepreneurs, restricting their ability to expand operations, engage in cross-border trade, and compete effectively within Africa’s emerging single market.

According to her, the continent’s vast economic potential will remain largely unrealised unless deliberate steps are taken to remove payment system barriers, stressing that inclusive economic growth cannot be achieved while SMEs are excluded by excessive transaction charges.

Mrs Asante-Asiedu made these remarks while speaking at the Africa Prosperity Dialogues on Wednesday, February 4, where she called for stronger alignment of regulatory frameworks across African countries. She also advocated for the introduction of licensing passport regimes and the expansion of cross-border mobile money and instant payment platforms to reduce costs for SMEs.

She emphasised that Africa’s ambition of a single market would remain largely symbolic unless financial value can move seamlessly, efficiently, and affordably across national borders.

“SMEs make up more than 90 per cent of businesses on the continent, with women dominating the informal sector, while young people are driving Africa’s digital transformation,” she said. “Yet these very groups are the most affected by high transaction costs and payment inefficiencies.”

She further indicated that the Bank of Ghana is committed to working with partners across Africa to ensure that policy conversations translate into practical solutions.

“At the Bank of Ghana, we are ready to collaborate with stakeholders to move from dialogue to decisive action,” she added.