High Expectations Herald Launch Of PAPSS As Nigeria, Other African Countries Sign Up

*Nigeria, Ghana and other African countries are founding members
* The Pan-African Payment and Settlement System (PAPSS) is a payment platform that will enhance inter-country trade as a settlement center

 

Expectations are high among African member states who make up the founding members of the Pan-African Payment and Settlement System (PAPSS) as it came live with the launch on Thursday in Ghana.

Already, 12 banks and four switching companies have been onboarded into the Pan-African Payment Settlement System according to the CEO Mike Ogbalu.

The launch ceremony also had in attendance, Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, Ghana’s President, Nana Akufo-Addo, who was represented by the country’s Vice President, Dr. Mahamudu Bawumia who hosted and presided over the commercial launch  and President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah.

Other dignitaries present at the launch include Chief Olusegun Obasanjo, former President of Nigeria and Chairman of the IAFTA Advisory Council, and Mahamadou Issoufou – former President of Republic of Niger who is acknowledged as a champion in driving the establishment of the AfCTA Initiative.

Speaking at the event, Mr. Godwin Emefiele, said the newly launched payment system will simplify cross-border trade and reduce the heavy dependence on the US dollars, Pounds and Euro hitherto resorted to when inter-african trade is being consumated.

“Businesses can be assured of an efficient and reliable payment gateway that supports the instant flow of funds and relatively the use of safe payment channels that usually comes at a high cost to households and businesses.

“Prior to the launch of PAPSS, settlements for intra Africa trade required a third currency and a non-African correspondent bank. This resulted in an estimated loss of close to $5 billion annually and undermined trade in Africa countries.

“The launch of PAPPS gives the fresh opportunity and aspiration for the African continent. It will simplify cross-border transactions, reduce third currencies for intra-African transactions and remove the need for correspondent banks and ultimately amplify intra trade significantly.

“CBN will ensure the financial institutions under its jurisdiction accept PAPSS and recommend it to businesses across Nigeria,” Emefiele said.

On his part, Ghana’s President, Nana Akufo-Addo, represented by the country’s Vice President, Dr. Mahamudu Bawumia said the platform would save Africa more than $5 billion annually in payment transaction costs, as it plays an important role in accelerating cross-country transactions and enabling the effectiveness of the AfCFTA. He commended Afreximbank and AfCFTA Secretariat for establishing the payment system as it is a major boost for the continent and would relieve it from dependence on external players.

“This launch is a result of many months of hard work, resolve and commitment towards achieving set objectives for the growth of the continent in trade. All Central Banks in Africa must now join up and ensure seamless transfer of funds deploying this most practical and important African solution to an African problem,” he said.

PAPSS is a cross-border financial market infrastructure which helps to eliminate payment transactions challenges in a continent with over 41 known currencies. It is expected to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa.