A coalition of African fintech firms has launched an innovative pilot program enabling direct currency swaps between Ghana and Nigeria, bypassing the U.S. dollar entirely.
The initiative, led by Ghana-based Brij Fintech in partnership with MTN Mobile Money (MoMo) and G-Money, aims to streamline cross-border transactions for businesses and reduce costs linked to dollar conversion.
Approved under the Bank of Ghana’s Regulatory Sandbox, the six-month trial of BrijX—a B2B digital currency swap platform—allows 5,000 users to test outbound transactions from Ghana to Nigeria. The platform facilitates real-time exchanges of Ghanaian cedis and Nigerian naira, eliminating the need for businesses to first convert funds to dollars, a process that often incurs fees and delays.
Dollar-Free Exchange Model
The pilot addresses long-standing calls from African financial experts to decouple intracontinental trade from the dollar. By creating a direct cedi-naira marketplace, BrijX could slash transaction costs and mitigate foreign exchange risks for small and medium enterprises (SMEs) reliant on cross-border commerce. “This isn’t just about efficiency—it’s about reclaiming economic sovereignty,” said a Brij Fintech Ghana representative.
MTN MoMo and G-Money, both major mobile money providers, are integrating their networks into the platform, enabling users to initiate swaps directly from their wallets. The partnerships leverage existing fintech infrastructure to ensure compliance with transaction limits and anti-fraud protocols.
Regulatory Backing and Regional Potential
The Bank of Ghana’s sandbox framework allows real-world testing while safeguarding consumer protections. If scaled, the model could reshape financial corridors across West Africa, where trade between Ghana and Nigeria exceeds $1.2 billion annually but remains hampered by dollar dependency.
BrijX, named Fintech Platform of the Year at the 2024 Ghana Fintech Awards, has already garnered industry acclaim for its collaborative approach. Analysts suggest success in this pilot could spur similar agreements between other African nations, aligning with the African Continental Free Trade Area’s (AfCFTA) goals of boosting intra-African commerce.
“This is a critical step toward financial inclusion,” said a Lagos-based trade analyst. “Reducing dollar reliance not only cuts costs but strengthens regional currency stability.”
As the trial progresses, stakeholders will monitor settlement speeds, liquidity, and user feedback. A viable solution could position West Africa as a blueprint for dollar-free transactions continent-wide—a shift poised to empower businesses and recalibrate Africa’s financial ecosystems.
