Pan-African Payment and Settlement System will save Africa $5b annually – President Akufo-Addo
Ghana President Nana Addo Dankwa Akufo-Addo has affirmed the Pan-African Payment and Settlement System (PAPSS) will save Africa more than US$5 billion annually in payment transaction costs. The statement was made by Dr. Mahamudu Bawumia, the Vice President, who represented him at the commercial launch of the payment system in Accra. He also observed that the ground-breaking platform will play an increasingly significant role in accelerating the continent’s transactions underpinning the operationalisation of the AfCFTA.
The President complimented Afreximbank and AfCFTA Secretariat for the establishment of the payment system citing PAPSS as a major leap in releasing the continent from overdependence on external players and factors in achieving a long yearned-for acceleration in intra-continental trade and investment.
“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,” added President Nana Akufo-Addo. He commented on the pan-African significance of Ghana hosting the event as a harbinger of the hard-won struggle for economic self-determination following the political decolonisation of the continent over 60 years ago.
PAPSS, developed by African Export-Import Bank (Afreximbank), is expected to boost intra-African trade by transforming and facilitating payment, clearing, and settlement for cross-border trade across Africa.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, said in his remarks: “We are eager to build upon the African Continental Free Trade Area’s creation of a single market throughout Africa, and PAPSS provides the state-of-the-art financial market infrastructure connecting African markets thereby enabling instant cross-border payments in respective local African currencies for cross-border trade.
Afreximbank as the main Settlement Agent for PAPSS, provides settlement guarantees on the payment system and overdraft facilities to all settlement agents, in partnership with Africa’s participating Central Banks. PAPSS will effectively eliminate Africa’s financial borders, formalise and integrate Africa’s payment systems, and play a major role in facilitating and accelerating the huge AfCFTA-induced growth curve in intra-African trade.”
The PAPSS launch event was graced by the presence of Olusegun Obasanjo, former President of the Federal Republic 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, representatives of the Presidents of Egypt and Uganda and DRC.
It featured presentations by Wamkele Mene, Secretary-General AfCFTA Secretariat, and Godwin Emefiele, Governor, Central Bank of Nigeria, and Chairman PAPSS Governing Council.
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