October 03, (THEWILL) – African Export-Import Bank (Afreximbank) has launched the pan-African payment and settlement system (PAPSS), a financial market infrastructure, to enable cross-border payments in local currencies across different markets on the continent.
A statement by the Bank said the platform will serve as a continent-wide platform for processing, clearing and settling of intra-African trade and commerce payments.
According to the statement, PAPSS is expected to save the continent more than $5 billion in payment transaction costs annually.
To accelerate the expansion of the platform, the bank has approved $500 million to support the clearing and settlement in West African Monetary Zone (WAMZ) countries, and an additional $3 billion will be made available to support the systems continent-wide implementation.
The Afreximbank president, Benedict Oramah, said “With the implementation of PAPSS, Africa can expect to begin to reap the fruits of the African Continental Free Trade Agreement (AfCFTA).
“Afreximbank is proud to have contributed in the realization of the multi-decade dream that seemed unachievable just a few years ago. PAPSS is not positioned to replace existing regional and national payment systems but to collaborate and work with them in better integrating African economies for the benefit of all. We thank the African Union, the AfCFTA Secretariat, the West African Monetary Institute and African Central banks for a remarkable outcome.”
PAPSS was proposed at the 12th extraordinary summit of the Assembly of the African Union (AU) in July 2019 as a key instrument for the implementation of the AfCFTA.