Follow Us on Google
By Chinwendu Obienyi
Following the successful signing of Memorandum of Understanding (MoU) by Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group and UBA Group, African Export-Import Bank (Afreximbank) says the initiative will domesticate cross-border payments by enabling cross-border trade in African currencies and at the same time strengthen African currencies.
Its President, Prof. Benedict Oramah, stated this during the bank’s 30th anniversary celebrations and yearly meetings in Accra, Ghana, recently. The MoU signified a major step forward in the pursuit of seamless cross-border trade payments throughout almost 40 countries covered by these banks.
Oramah said the agreements was remarkable steps towards the realisation of the aspirations of Africa’s fore-leaders, 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,” Oramah said.
Also speaking, the Secretary General, AfCFTA, Wamkele Mene, said the introduction of the new PAPSS model for onboarding African commercial banks and the signing of the MoUs with the five banks signified a bold step towards the full operationalisation of PAPSS for the benefit of African traders and SMEs in the implementation of the AfCFTA agreement.
For his part, the Chief Executive Officer, PAPSS, Mike Ogbalu III, expressed enthusiasm about the collaborations.
According to him, by embracing PAPSS’ commercial bank settlement model, the banks are helping to build a robust continental platform for fostering cross-border payments, thereby paving the way for financial inclusion and substantial continental economic development.
The signing of Memorandum of Understanding (MoU) between the banks has been applauded with analysts stating that the significant partnerships could revolutionize the settlement of cross-border transactions across Africa.
PAPSS is expected to leverage the vast network of subsidiaries and representative offices of the partners across major economic centers in Africa. The partners said the agreements signified a step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by the banks.
They noted that the broad collaboration between PAPSS and African commercial banks will pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement.
According to the partners, the adoption of PAPSS’s cutting-edge settlement model will streamline operations and empower businesses by providing a secure and technologically advanced platform for cross-border transactions.
