The cross-border payments infrastructure was developed and initiated through the collaborative effort of the AfCFTA Secretariat, Afrexim bank and the African Union Commission working together with the West African Monetary Institute and associated central banks in the WAMZ region.
It is designed to ensure instant payments for goods and services between African jurisdictions where payments are initiated and settled in local currencies of initiators and beneficiaries, thereby eliminating the need for third-party currencies to consummate trade within our region.
The Pan African Payment and Settlement System (PAPSS), a financial market infrastructure to facilitate trade-related payments across the continent has been launched at the AfCFTA Secretariat in Accra.The cross-border payments infrastructure was developed and initiated through the collaborative effort of the AfCFTA Secretariat, Afrexim bank and the African Union Commission working together with the West African Monetary Institute and associated central banks in the WAMZ region.
It is designed to ensure instant payments for goods and services between African jurisdictions where payments are initiated and settled in local currencies of initiators and beneficiaries, thereby eliminating the need for third-party currencies to consummate trade within our region.
Vice President, Dr. Mahamudu Bawumia, who launched the system, applauded the AfCFTA Secretariat and Afreximbank for initiating the development of the centralized payments infrastructure for cross-border trade.“With the launch of the PAPSS, the building blocks of the AfCFTA are progressively falling into place. The successful pilot of the system across the WAMZ region shows that the efforts have borne the desired fruits,” he notes.
According to Dr. Bawumia, the seamless implementation of the single continental market requires the commitment and effort of central banks of Africa as supervisors of the payments system to enhance the hassle-free transfer of funds across the continent.“Establishing an efficient payment infrastructure that will facilitate transactions across the continent will go a long way to eliminate the artificial borders that have divided the continent and robbed us of our shared prosperity,” said Mike Ogbalu III, Chief Executive Officer of PAPSS at the Afreximbank launch.
He adds that: “Together, we’ll create the foundational support for the innovation of trade and payment solutions which will help the continent to solve uniquely African challenges.”
Secretary-General of the AfCFTA Secretariat, Wamkele Mene, described the launch of the PAPSS as a historic milestone towards the integration of the African continent.
“Today is a historic day; the dream of building an integrated Africa is becoming a reality in our lifetime.
We now have an opportunity to give practical meaning and content to Pan-Africanism and PAPSS is a pioneering effort in achieving a continental payment and settlement system that will enable Africa to reduce reliance on third currencies and more importantly, with huge potential to boost intra-African trade,” he states.
According to the AfCFTA boss, PAPSS is a critical tool for boosting intra-Africa trade and with its launch, the implementation of the AfCFTA is well-positioned to the benefit of target beneficiaries such as small and medium enterprises, young entrepreneurs and Africans trading across borders through reduced costs.
Chief Executive Officer of Afreximbank, Prof. Benedict Oramah, remarked that the centralized cross-border payments infrastructure will address the challenges of trade and the harm of resorting to third-party currencies to consummate trade transactions on the continent.
He indicates: “It’s a revolutionary and pathbreaking system that can transform Africa’s financial landscape and promote continental trade and financial integration.
Today’s commercial launch of PAPSS is a watershed moment for the continent and represents another step towards restoring the dignity of Africans.”
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