The African Export-Import Bank has created a payment solution platform, the Pan-African Payment and Settlement System. This is to facilitate instant cross-border payments in local African currencies. They expect this to save African traders about $5bn annually in currency convertibility.
The CEO, PAPPS, Mike Oghalu contained the announcement in a statement while speaking at the post-annual general meeting of the International Chamber for Commerce of Nigeria in Lagos. According to Oghalu, “Intra-Africa trade is by far the lowest intra-continental trade globally standing at 15-17per cent.”
A statement by Oghalu explained that most of the cross-border payment transactions originating from African banks highly depended on foreign exchange. And also cleared outside the continent, with less than 20 per cent of the total payment flows being cleared in Africa.
Speaking during his presentation titled, ‘Connecting Payments, Accelerating Africa’s Trade’, in Lagos. He explained that with PAPPS as one of the four pillars of the African Continental Free Trade Agreement. Cross-border transactions is easy with a successful pilot in WAMZ region. And also partnerships with central banks in multi-lingual, multi-currency and multi regulator regions.
Oghalu further added in his statement that PAPSS supported integration in both national and regional payment systems. With a sound legal framework and had many commercial banks and switches already on its network.
-Punch.
