Godwin Emefiele, the governor of the Central Bank of Nigeria, said the Pan-African payment and settlement system (PAPSS) will simplify cross-border transactions and reduce third currencies for intra-African trade. The third currencies include dollars, pounds and euro for cross-border transactions in Africa.
President Yoweri Museveni has welcomed the partnership between the African Export-Import Bank (Afreximbank) and the Secretariat of the African Continental Free Trade Area (AfCFTA) to launch the Pan-African Payments and Settlement Systems (PAPSS), a platform that facilitates instant cross-border payments in local currencies between countries.
Museveni made the comment through the Minister of Finance, Planning and Economic Development Matia Kasaijja who had represented him at the commercial launch of the Pan-African Payment and Settlement System (PAPSS) that took place in Accra, Ghana.
“I would like to commend you and your team for successfully piloting the PAPSS in the six countries that make up the West African Monetary Zone (WAMZ) despite its multi-currency and bi-lingual makeup. I look forward to that time when traders from the remaining parts of Africa will take advantage of the platform to ease cross-border transactions, reduce the dependency on hard currencies for these transactions and bring about a significant boost in intra-African trade,” Museveni said.
Museveni apologized for his absence at the launch that he had to delegate a Minister.“This is an event that I would have liked to attend in person, but I am unable to do so due to prior domestic commitments. I have…,” Museveni said.
During the ceremony that was held under the theme “Connecting Payments, Accelerating Africa’s Trade,” Ghana’s Vice President Mahamudu Bawumia said Africa’s new cross-border payment system will save the continent billions of dollars in annual transaction costs and bolster shipments in the world’s largest free-trade zone.
Godwin Emefiele, the governor of the Central Bank of Nigeria, said the Pan-African payment and settlement system
(PAPSS) will simplify cross-border transactions and reduce third currencies for intra-African trade. The third currencies include dollars, pounds and euro for cross-border transactions in Africa.
PAPSS is a centralised payment and settlement infrastructure for intra-African trade and commerce payments developed in collaboration with the African Export-Import Bank and Afrexim bank. It will facilitate payments as well as formalise some of the unrecorded trade due to the prevalence of informal cross-border trade in Africa.
It will also provide an alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost and risk-controlled payment clearing and settlement system.