A New Age of Payments with the Pan-African Payments and Settlement System (PAPSS)
Stanbic IBTC Corporate and Investment Banking
Committed to driving progress across Africa
The African Union vision of African Continental Free Trade Agreement (AfCFTA), connecting 1.3 billion people across 55 countries with a total GDP of $3.4 trillion is challenged by a payment infrastructure. The need for centralised payment and settlement infrastructure to support trade was spearheaded by Africa Export-Import Bank (Afreximbank) in partnership with the AfCFTA Secretariat and named Pan-African Payment and Settlement System (PAPSS).
PAPSS is an African Union infrastructure developed in collaboration with the African Export-Import Bank (Afreximbank) to complement trading under the AfCFTA. The payment platform aims at simplifying transactions by transforming and facilitating payments, clearing and settlement for cross-border trade across Africa. While discussions on value addition for more profitable trade was at the fore, stakeholders also explored ways in which traders can ease the payment process.
Trade is not complete without the exchange of money for goods and services. Therefore, having a unified trade solution that enables quick and easy payment across African countries and currencies is a significant step in the right direction. This is what PAPSS offers traders. PAPSS – Pan African Payment and Settlement Systems is a central Financial Market Infrastructure (FMI) that supports payment arrangements for the purpose of expanding international trade amongst African States, and to facilitate the Central Banks’ economic and financial integration.
PAPSS is a payment solution that allows for payment across African countries without the hassle of foreign exchange nuances. On the back of this solution is multilateral trading that can bring about improved revenue generation for traders in Nigeria and Africa.
The introduction of a payment solutions such as PAPSS, will serve to facilitate intra-Africa trade, reduce difficulties as payment for trade transactions will be made and received in local currency leading to lower fees and improved remittance timelines.
PAPSS is currently live in the West African states Monetary Zone (WAMZ) consisting of the following countries: Nigeria, The Gambia, Sierra Leone, Liberia, Ghana, and Guinea. Further engagements are ongoing with all African Central Banks and regional payment institutions.
To access PAPSS at Stanbic IBTC, send an email to [email protected].