AFRICA could save $5BN a year in transaction costs with the Pan-African Payment & Settlement System
PAPSS CEO Mike Ogbalu is in the C-SUITE. The Pan-African Payment System is set to play an increasingly significant role in accelerating the continent’s transactions which underpin the operationalisation of the African Continental Free Trade Area.
PAPSS, developed by African Export-Import Bank (Afreximbank), is expected to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, stated:
“We are eager to build upon the African Continental Free Trade Area’s creation of a single market throughout Africa, and PAPSS provides the state-of-the-art financial market infrastructure connecting African markets to each other thereby enabling instant cross-border payments in respective local African currencies for cross-border trade. Afreximbank as the main Settlement Agent for PAPSS, provides settlement guarantees on the payment system and overdraft facilities to all settlement agents, in partnership with Africa’s participating Central Banks. PAPSS will effectively eliminate Africa’s financial borders, formalise and integrate Africa’s payment systems, and play a major role in facilitating and accelerating the huge AfCFTA-induced growth curve in intra-African trade.”
Watch more episodes of the C-SUITE here.
The Pan-African Payment and Settlement System – PAPSS – enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions.
Whether shopping, transferring money, paying salaries, dealing in stocks and shares or making high-value business transactions, PAPSS’ real-time infrastructure provides a reliable, cost-effective answer for instant payments.
PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks, payment service providers and fintechs across the region can connect as ‘Participants’.
At a time when cross-border trading is high on the agenda with the African Continental Free Trade Area (AfCFTA) agreement now a reality, PAPSS is primed to facilitate the expected increased volumes in cross-border payments.
PAPSS is the brainchild of Afreximbank, Africa’s pre-eminent trade finance institution, whose mission includes stimulating the expansion, diversification and development of African trade.
Afreximbank recognised that for Africa to unlock its massive potential for internal trade, enabling the efficient flow of transactions across African borders was of paramount importance.
The key is a single payment infrastructure that cuts through the existing challenges of local currency exchange and ensures instant payment of funds.