Digital payment system unveiled at the fintech forum in Rwanda

Africa’s fragmented financial landscape makes cross-border money transfers costly and inefficient, hindering trade and financial inclusion. To address these challenges, the Global Finance & Technology Network – an organisation established by the Monetary Authority of Singapore (MAS) – has partnered with the central banks of Ghana and Rwanda to launch the Next-Gen Digital Payment Infrastructure, known as Project 54. The initiative, designed to facilitate instant, low-cost and secure payments across African borders, was unveiled at the recent Inclusive Fintech Forum (IFF) in Kigali, a collaboration between Rwanda and Singapore.

The African Continental Free Trade Area aims to create a single market for goods and services, incorporating the continent’s 1.5bn people. However, high transaction costs and slow money transfers remain major obstacles to achieving this goal, affecting businesses and remittances alike. In 2022, an estimated 40m Africans living outside their home countries sent approximately US$100bn in remittances. Of this, US$19.4bn was transferred within Africa, highlighting the importance of intra-continental financial flows. Yet over 80% of these payments were routed through Europe or the US, which increased compliance requirements and transaction fees.

Project 54 is structured around three core pillars:

• Digital identity infrastructure – A secure and verifiable identity system designed to support seamless financial transactions across Africa. There is broad consensus that for such a system to be effective, it must be compatible across different countries and financial platforms, allowing users to verify their identity and transact without restrictions across the continent.
• Interoperable payment systems – A standardised infrastructure that enables real-time cross-border transactions within Africa’s financial ecosystem.
• Licence passporting and data exchange – A framework for secure regulatory alignment, enabling financial institutions and fintechs to operate across African jurisdictions with fewer regulatory hurdles.
  

In the coming months, the project’s promoters will refine the implementation roadmap, harmonise regulatory approaches, and integrate technology, leading to pilot deployments before full-scale adoption.

Alongside Project 54, efforts to reduce regulatory barriers took another step forward at the IFF, where Ghana and Rwanda signed Africa’s first Licence Passporting Framework, also backed by MAS. The framework allows fintech companies licensed in one country to operate in the other with minimal additional regulatory requirements. This is similar to the European Union’s Payment Services Directive, which enables fintech firms to obtain a licence in one EU member state and “passport” their services across all others.

For fintech startups, this simplifies cross-border operations. It is also a positive for investors, as it allows the fintech companies they back to access a wider market, enhancing their growth potential. 

The past decade has seen a surge in African fintech startups, with the sector expected to grow fivefold to US$47bn in revenue by 2028. However, operating across borders remains a persistent challenge due to regulatory fragmentation.

Speaking at the IFF, Alvin Tan, Singapore’s Minister of State for Trade and Industry and a board member of MAS, highlighted the need for global collaboration to strengthen Africa’s digital economy. He emphasised that addressing infrastructure gaps, harmonising regulations, and fostering cross-border partnerships are essential to unlocking fintech’s potential and creating a more inclusive and efficient financial system across the continent.

 

References

'Empowering economic inclusion through accelerated technology adoption', Elevandi, August 2024

'Singapore and Rwanda to co-host Inclusive Fintech Forum 2025 in February', Fintech News Singapore, 07 November 2024

'Africa FinTech Landscape 2024 Year in Review', Global Finance & Technology Network, February 2025

'LinkedIn post', Inclusive FinTech Forum, 25 February 2025

'One license, two markets: The future of fintech in Ghana & Rwanda', Lexology, 25 February 2025

'Remarks - IFF 2025: Project 54 launch', Global Finance & Technology Network, 25 February 2025

'Roundup: Delegates at Inclusive FinTech Forum call for stronger cooperation to drive Africa's digital financial revolution', Xinhua, 26 February 2025

'LinkedIn post', Global Finance & Technology Network, 26 February 2025

'Africa population (LIVE)', Worldometers, Accessed on 26 February 2025