Public Management

Afreximbank, AfCFTA kick off Pan African payment and settlement system

Afreximbank, AfCFTA kick off Pan African payment and settlement system
Tuesday, 28 September 2021 19:15

The African Export-Import Bank (Afreximbank) and the Secretariat of the African Continental Free Trade Area announced today the rollout of the Pan African Payment and Settlement System (PAPSS). It is aimed at enabling African countries to make instant cross-border payments in local currencies.

“PAPSS would serve as a continent-wide platform for the processing, clearing, and settling of intra-African trade and commerce payments, leveraging a multilateral net settlement system. Its full implementation is expected to save the continent more than $5 billion in payment transaction costs each year,” according to an official statement.

The PAPSS has already been tested in the West African Monetary Zone (WAMZ), the same area where a single currency project is being developed under the Eco label. To accelerate the expansion and ensure settlement finality, Afreximbank has approved $500 million to support clearing and settlement in countries within the WAMZ. An estimated additional $3 billion will be made available to support the implementation of the system across the continent.

Central banks on the continent have agreed to use the facility, but discussions are still needed to secure maximum membership. The share of intra-African trade remains low, according to indicators from the International Trade Centre. In 2020, imports between African countries reached $58.6 billion, down for the second year in a row, and representing less than 12% of the total imports of countries in the region.

The weak volume of intra-African trade is mainly due to the multiplicity of currencies on the continent. “With the implementation of PAPSS, Africa can expect to begin to reap the fruits of the African Continental Free Trade Agreement. Afreximbank is proud to have contributed to the realization of the multi-decade dream that seemed unachievable just a few years ago,” said Benedict Oramah, Chairman of PAPSS Management Board and Afreximbank President.

Additional Info

  • communiques: Non
  • couleur: N/A
On the same topic
• Bassirou Diomaye Faye denounces credit rating agencies’ methodologies as ill-suited to African contexts.• Senegal urges reforms to enable fairer...
(AfDB)-The Board of Directors of the African Development Bank Group has approved a $474.6 million loan for South Africa's Infrastructure Governance...
New card enables African payments without using US or European networks Aims to lower costs, protect financial data, and boost intra-African...
• Burkina Faso-based financial group, Vista Group Holding, has acquired a majority stake in Société Générale Burkina Faso (SGBF).•The move is part of...
Most Read
01

Lebara Group is now bringing its affordable and reliable mobile services to Africa, starting with Ni...

Telecoms: Lebara Enters Nigerian Market with Strong Competitive Ambitions
02

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
03

• Gates Foundation commits $1.6 billion over five years to Gavi.• Bill Gates warns of rising ch...

Gates Foundation Pledges $1.6 Billion to Gavi to Boost Global Child Vaccination
04

In a West African financial landscape marked by tighter regulation of the fintech sector, digital fi...

In Five Years, Francophone Africa Will be A Major Force in African Tech –Régis Bamba
05

Transport and food prices have been climbing steadily across Africa in recent years. In Côte d’Ivoir...

Côte d’Ivoire’s Fuel Price Cuts Haven’t Slashed Transport Costs–Yet
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.