By Mercy Darko
Transfer of funds among African countries has been made easier 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 in all the 54 countries on the continent.
At the Official launch of PAPSS in Accra, Vice-President Mahamudu Bawumia said the motive behind integrating the payment platforms is to ensure that the Continent increases intra-African trade that will translate into substantial economic benefits.
He noted that business transactions will be done in real time as complexities will be reduced. He stressed that PAPSS is a solution to African problems and a step closer to achieving one currency for the Continent.
The Pan African Payment and Settlement System, PAPSS will ensure an instant transfer of funds from one African country to another. This is a cross-border payment system which instantly connects payment transactions across Africa. It comes in three stages.
These are pre-funding, instant payment and settlement and utilization of the Percentage in Points, PIP. It will benefit all stakeholders including governments, banks and customers. It will also offer speed, simplicity and security while increasing access to new African markets with minimum cost.
Vice President Bawumia commended all stakeholders who contributed to make this dream a reality.
”I appealed to all Africans to embrace PAPSS to improve intra-region trade”.
Dr. Bawumia urged Central Banks in the region to ensure that their national switches are connected to the system.
Chief Executive Officer of PAPSS, Mike Ogbalu, said the introduction of the platform is a step in the right direction as it will help eliminate the artificial barriers to trade on the Continent.
He said the new system will not replace other existing platforms but create reliable connectivity for cross-border transactions.
The initiative has received support from the Afreximbank, African Union and the Africa Continental Free Trade Area, AfCFTA Secretariat.