The Ghana Association of Banks has reaffirmed its strong commitment to advancing Ghana’s financial sector efficiency, as its Chief Executive Officer, John Awuah, participated in the signing of a landmark Service Level Agreement (SLA) aimed at modernising government payment systems.

The agreement, signed between Ghana Interbank Payment and Settlement Systems (GhIPSS), the Ghana Association of Banks (GAB), and the Ministry of Finance (MoF) acting through the Controller and Accountant-General’s Department(CAGD), marks a major step in Ghana’s transition from manual cheque-based payments to a fully integrated electronic funds transfer system under the GIP–GIFMIS platform.

Speaking at the event, Mr. Awuah described the initiative as a “significant milestone” in strengthening public financial management and deepening financial sector efficiency. He noted that the transition to a digital payment framework would eliminate longstanding inefficiencies associated with manual processes, while enhancing transparency, traceability, and auditability in public financial transactions.

He also emphasised that the reform supports Ghana’s broader policy objective of advancing a cash-lite, digitally driven economy anchored on efficiency and financial inclusion. By improving settlement efficiency, reducing delays, and minimising operational risks, the platform is expected to strengthen confidence in the financial system and support more effective financial intermediation.

Mr. Awuah further noted that the banking industry stands fully prepared to support the implementation of the initiative. He highlighted that member banks will integrate their systems with the GIP–GIFMIS platform, adhere to agreed timelines, strengthen internal compliance frameworks, and assist clients through the transition process.

Importantly, he stressed that improvements in payment processing must be matched with discipline in payment execution. He raised concerns about delays in remittances to third-party beneficiaries, particularly in cases where loan repayments have already been deducted at source but not transferred promptly. Such delays, he explained, create inefficiencies, disrupt loan repayment cycles, and introduce avoidable credit risks within the banking system.

He therefore called for a holistic, end-to-end approach to efficiency, where payment initiation, processing, settlement, and final credit occur seamlessly within clearly defined timelines. He noted that while the SLA provides a strong framework, its success will ultimately depend on effective execution, adherence to protocols, and continuous monitoring.

Mr. Awuah also underscored the broader significance of the initiative in strengthening trust across the financial ecosystem. He explained that a reliable and efficient payment system enhances confidence between government, financial institutions, and customers, thereby supporting credit delivery, improving risk management, and facilitating economic activity.

He concluded by reaffirming the Ghana Association of Banks’ commitment to continued collaboration with key stakeholders, including the Ministry of Finance, CAGD, Bank of Ghana, and GhIPSS, to ensure the successful implementation of the initiative.

“This is not just about modernising payments,” he noted. “It is about setting a new benchmark for efficiency, discipline, and coordination within Ghana’s financial system.”