Five banks on the African continent have embraced the Pan-African Payment and Settlement System (PAPSS) for seamless cross-border trade payments.
To this end, PAPSS has signed Memorandums of Understanding (MOUs) with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group.
These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.
These MoUs were signed at the Afreximbank’s 30th Anniversary Celebrations in Ghana, while signature of these Memorandums signifies a monumental step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by these banks.
The broad collaboration between PAPSS and African commercial banks is expected to pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement.
The adoption of PAPSS’s cutting-edge settlement model, according to experts, will streamline operations and empower businesses by providing a secure and technologically advanced platform for cross-border transactions.
As part of this partnership, the five banks will collaborate closely with PAPSS to ensure seamless integration of PAPSS into their existing systems.
This collaborative effort will include opening up all their African footprints for PAPSS, facilitating settlement of transactions, encouraging the participation of Fintech in PAPSS via the banks and expanding PAPSS to all the banks’ current digital channels, such as; mobile app banking and e-banking.
Speaking on the signing, president of Afreximbank, Professor Benedict Oramah said: “the signature of these MoUs marks a remarkable step towards the realisation of the aspirations of Africa’s fore leaders, who envisioned the creation of a payment and clearing union about six decades ago.
“It also draws us closer to domesticating cross-border payments by enabling payments for cross-border trade in African currencies while strengthening African currencies. By leveraging on the vast continental coverage of these African commercial banks, PAPSS will seamlessly facilitate cross-border trade and payments and boost intra-African trade and investments.”
Also, secretary general of AfCFTA, Wamkele Mene stated that, “the introduction of the new PAPSS Model for onboarding African Commercial Banks and the signing of the MoUs with the five African Commercial Bank Groups signifies a bold step towards the full operationalisation of PAPSS for the benefit of African traders and SMEs in the implementation of the AfCFTA Agreement.”
The chief executive officer of PAPSS, Mr. Mike Ogbalu III, expressed enthusiasm about these collaborations, stating that “these partnerships with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group mark a significant milestone in the journey toward a more integrated and efficient African banking landscape.
“By embracing PAPSS’ Commercial Bank Settlement Model, these banks are helping build a robust continental platform for fostering cross-border payments, thereby paving the way for financial inclusion and substantial continental economic development.”
The Pan-African Payment and Settlement System is a centralised Financial Market Infrastructure that enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions.
