SMEs to get more access to trade and financing with MAS-Bank of Ghana tie-up

SMALL and medium-sized enterprises (SMEs) in Singapore may have greater access to trade opportunities and financial services from Ghana, with the Monetary Authority of Singapore (MAS) and the Bank of Ghana (BOG) in talks to cooperate.

MAS said on Tuesday that it has commenced discussions with BOG to adopt the Business sans Borders (BSB) open hub of platforms between Singapore and African country.

BSB was started by MAS and Singapore's Infocomm Media Development Authority on a global digital infrastructure to facilitate more seamless trade and digital business services connectivity.

By including Ghana in BSB, an SME in Ghana selling artisanal products or fruits would be able to digitally find a buyer in Singapore through BSB, for example. Similarly, a Singapore SME looking to source for cocoa or sell its local products will be able to reach out to new markets in Ghana.

The Ghana and Singapore SMEs will also be recommended essential business services, such as financing and logistics support, to complete the trade through BSB.

In addition, MAS and BOG will start an SME financial trust corridor (FTC). It will comprise a governance framework and digital infrastructure, which banks and fintech companies in both countries can refer to and use when sharing key information relevant for credit assessment, while abiding by domestic and international regulations, such as data protection and anti-money laundering requirements.

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MAS said that the FTC would provide "strong trust" for SMEs by financial institutions, leading to wider and deeper financial sector support for SMEs. This would make it easier for SMEs involved in cross-border trade to obtain faster and more working capital offerings and invoice financing.

Sopnendu Mohanty, chief fintech officer at MAS, said: "We are excited to partner BOG to create the world's first SME financial trust corridor, as well as welcome Ghana into BSB. Together, we can start to build increased trade flows and enhance financial trust and services support between our economies through both the FTC and BSB initiatives."