GCB Bank Plc performs 1st cross border trading as NGX projects for more 

By Chinwendu Obienyi

Cross-border securities transactions across African capital markets received a significant boost at the weekend as GCB Bank Plc, Ghana’s first indigenous bank performed the first set of trade transactions.

The Nigerian Exchange Limited (NGX) and Pan African Payments Settlement System (PAPSS) last week signed a Memorandum of Understanding (MOU) to integrate their payment systems into the capital market.

According to data, GCB Bank Plc performed its first set transactions in 15:54.3 and 16:22.9 as its process completion worth N120,500.00 received by Stanbic IBTC.

Furthermore, the receiver amount stood at 2,482,462.92 at a fee of 110.18. 

The CEO, NGX, Temi Popoola , in his remarks said that integrating PAPSS into the cross-border capital market framework will fix issues of currency convertibility, reduce cost, shorten processing and settlement time and foster access to capital.

Popoola had noted that the continent has a growing number of financial institutions that can offer cross border trading but has challenges with trading with local currencies.

The NGX CEO said, “We hope that the success of this partnership will inspire other African nations to integrate with PAPSS to enable other member countries to benefit from improved efficiency. NGX’s partnership with PAPSS is a step to developing Africa’s capital markets, adding that the exchange is looking forward to the first announcement of cross border transactions done on the payment system”.

In his welcome remarks, the Chairman, NGX, Abubakar Mahmoud, stated that investors will enjoy a more efficient and cost-effective way of investing in African securities, thus promoting regional integration and boosting trade flows.

Also commenting, the CEO, PAPSS, Mike Ogbalu III said, “With the signing of this MOU with our strategic partner NGX, we expect more transactions to flow into our system, but we also expect more Central Banks to join the PAPSS infrastructure to extend the reach to millions more with the resultant positive impact on intra-African Trade.”