As digital currencies evolve, African nations are exploring Central Bank Digital Currencies (CBDCs) to modernize their economies. Ghana and Nigeria are at the forefront of this process.
Ghana: e-Cedi Project
Ghana began exploring CBDCs in 2019, and its e-Cedi project gained momentum in 2021 through a partnership with German firm G+D. The project is moving through studies, pilot phases, and technical refinements. Goals of the e-Cedi include enhancing financial inclusion, reducing currency printing costs, leveraging existing mobile platforms, and improving cross-border payments.
Nigeria: e-Naira Experience
Nigeria made history by launching the e-Naira in 2021, Africa's first CBDC. However, nearly four years later, the project faces challenges such as low adoption rates, public misunderstanding, and infrastructure gaps. These issues underscore the importance of transparency and clear use cases.
Recommendations for Ghana
To avoid the pitfalls of e-Naira, Ghana can employ strategies to ensure the success of the e-Cedi, such as enhancing public education, leveraging existing infrastructure, and ensuring a seamless distribution of e-Cedi wallets, while prioritizing offline access.
Ghana’s e-Cedi project holds promise to transform the country's financial landscape, learning from Nigeria’s e-Naira experience. Despite e-Naira's implementation struggles, Ghana has the opportunity to set a new standard for CBDCs in Africa, promoting financial inclusion and digital transformation.
