With the help of the extensive network of regional subsidiaries and representative offices, Ecobank Group, Access Bank Group, UBA Group, and two other financial institutions have partnered with the Pan-African Payment and Settlement System (PAPPS) to revolutionize the settlement of cross-border transactions throughout Africa.
The agreement, which was recently signed during Afreximbank’s 30th anniversary celebrations and 30th annual meetings held in Accra, Ghana, represented a significant advancement in the effort to achieve seamless cross-border trade payments throughout the nearly 40 countries that these institutions serve.
Additionally, the synergy would open the door for improved intra-African settlement efficiency, transparency, and dependability.
By offering a protected and cutting-edge platform for cross-border transactions, the adoption of PAPSS’s cutting-edge settlement model would expedite operations and empower enterprises.
In order to ensure the smooth integration of PAPSS into their current systems, the banks would closely collaborate with payment businesses as part of the collaboration.
This joint effort would involve opening up all of their African footprints for PAPSS, streamlining transaction settlement, encouraging Fintech participation in PAPSS via the banks, and extending PAPSS to all of the banks’ current digital channels, such as mobile app banking and e-banking.
The president of Afreximbank, Professor Benedict Oramah, commented on the signing as follows: “The signature of these MoUs marks a remarkable step towards the realisation of the aspirations of Africa’s foreleaders, 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.”
Secretary General of the AfCFTA, H.E. Wamkele Mene, also spoke about the synergy: “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 operationalization of PAPSS for the benefit of African traders and SMEs in the implementation of the AfCFTA Agreement.”
Mike Ogbalu, the chief executive officer of PAPSS, expressed excitement about the synergy and noted that it represents an important turning point on the path to a more connected and effective African banking ecosystem.
“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.”
“These MOUs will be put into effect gradually in partnership with central banks in the countries where the five bank groups operate. Customers of the banks in Africa will be informed through the usual channels of communication as soon as the service becomes available in their countries. PAPSS and the banks will be working towards making this service available towards year-end,” he added.
