The Nigerian Exchange Limited (NGX) and the Pan-African Payment and Settlement System (PAPSS) of the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) in order to transform and facilitate payment, clearing, and settlement for cross-border trade across the continent and connect payments.
In order to address the existing issues in the securities and trade markets throughout the continent, this cooperation is anticipated to encourage an effective payment system and improve market liquidity.
The idea of permitting effective cross-border payments among African capital markets has now materialized, according to Oramah, who also pointed out that Afreximbank’s $3 billion assistance and backing of clearing and settlement has domesticated all African payments.
Hence, we made the decision to work with the Africa Continental Free Trade Agreement (AfCFTA) and the African Union Commission and Central Banks to put in place the pan African payment and settlement system which allows payment from West African trade in local currency”.