The transfer of funds between African countries facilitated with the PAPSS

0

The Vice President, Dr. Mahamudu Bawumia launched the platform in Accra-Ghana

The transfer of funds between African countries has been facilitated and secured with the introduction of the Pan-African Payment and Settlement System, PAPSS.

This cross-border financial market platform will connect payments to accelerate trade across the continent’s 54 countries.

During the official launch of PAPSS in Accra, Vice President Mahamudu Bawumia said the motive for integrating payment platforms is to ensure that the continent increases intra-African trade which will result in substantial economic benefits.

He noted that business transactions will be done in real time as complexities will be reduced. He stressed that the PAPSS is a solution to African problems and a step closer to achieving a single currency for the continent.

The Pan-African Payment and Settlement System, PAPSS, will provide instant transfer of funds from one African country to another. It is a cross-border payment system that instantly connects payment transactions across Africa. It comes in three stages.

These are pre-funding, instant payment and settlement and the use of percentage points, PIP. This will benefit all stakeholders, including governments, banks and customers. It will also offer speed, simplicity and security while increasing access to new African markets at lower cost.

Vice President Bawumia congratulated all the stakeholders who contributed to making this dream a reality.

“I called on all Africans to embrace PAPSS to improve intra-regional trade.”

Dr Bawumia urged central banks in the region to ensure that their national switches are connected to the system.

PAPSS Managing Director, Mike Ogbalu, said the introduction of the platform is a step in the right direction as it will help remove artificial barriers to trade on the continent.

He said the new system will not replace other existing platforms but will create reliable connectivity for cross-border transactions.

The initiative has received support from Afreximbank, the African Union and the African Continental Free Trade Area, AfCFTA Secretariat.

Share.

Comments are closed.