Vice President His Excellency Dr Mahamudu Bawumia has launched the commercial operations of the Pan-African Payment and Settlement System (PAPSS) with a charge for African Central Banks to connect payments to PAPSS.
PAPSS is a cross-border, financial market infrastructure instantly connects payment transactions across Africa thereby eliminating the need to channel such payments along third party banks usually located outside the continent.
He explained that the successful implementation of PAPSS would enhance intra-African trade and ensure an efficient and transparent payment system.
He added that it will further simplify the historical complexities and costs of making payments across Africa's borders and provide operational efficiencies that open up vast economic opportunities for African economies.
He also added that in order for Banks across the continent to benefit from the full potential of PAPSS, there's the need for Governors of central banks to accelerate the process of making sure that their respective National switches are connected to PAPSS.
Chief Executive Officer of the Pan-African Payment and Settlement System (PAPSS) Mr Mike Ogbaluu III stated that PAPSS will help eliminate artificial boarders in trading in Africa thereby increasing the volumes and value of intra African trade.
According to him, it is designed to ensure instant payments of goods and services between African countries, payments are initiated and settled in the local currencies of initiators and beneficiaries effectively eliminating the need for third (hard) currencies to consummate trades within the African continent.
“With every bank onboard to PAPSS, we enable thousands of their clients to trade within Africa. Every bank joining PAPSS gains access to trade with 10s of thousands of end-users already connected through our growing community of financial institutions”, Mr Ogbaluu said.
The Secretary-General of AfCFTA Secretariat, Wamkele Mene also argued that PAPSS is a pioneering effort at achieving a pan African payments and settlements system which would enable Africa to reduce its reliance on third currencies, and more importantly, it has the potential to significantly boost intra-Africa trade.
The Pan-African Payment and Settlement System (PAPSS) was launched in Accra on the theme: "Connecting Payments, Accelerating Africa's Trade."