PAPSS, 5 African multinational banking groups sign MOUs on new Settlement Model
The Pan-African Payment and Settlement System (PAPSS,) has signed Memorandums of Understanding (MOUs) with five African multinational commercial banking groups for seamless cross-border trade payments.
The groups include Standard Bank Group, Access Bank Group, Ecobank Group, KCB Group, and UBA Group.
These significant partnerships aim to revolutionise the settlement of cross-border transactions across Africa, leveraging on the vast network of subsidiaries and representative offices across major economic centres across Africa.
These MOUs were signed on Monday, June 19, 2023, at the opening ceremony of Afreximbank’s 30th Anniversary Celebrations and 30th Annual Meetings held in Accra, Ghana, a statement by Brandcomms Agency said.
It was in the presence of Heads of State and Prime Ministers from Africa and the Caribbean, Heads of continental policy and governance institutions as well as international institutions.
The News Agency of Nigeria (NAN) reports that the platform will, for instance, allow a business in Nigeria to trade with another in, perharps, Ghana, using the Naira and Cedi respectively.
Again, PAPSS makes cross-border payments easier, such that transactions don’t take days or weeks to settle.
Transaction executed using PAPSS are expected to be secure, promote financial inclusion, and most importantly – unite Africa.
The signature of the MOUs signified a monumental step forward in the pursuit of seamless cross-border trade payments throughout the almost 40 countries covered by these Banks.
“The broad collaboration between PAPSS and African commercial banks will pave the way for enhanced efficiency, transparency, and reliability in intra-African settlement.
“ 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,” the statement said.
As part of this partnership, Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group will collaborate closely with PAPSS to ensure seamless integration of PAPSS into their existing systems, it said.
This collaborative effort will include opening up all their African footprints for PAPSS.
Also, facilitating settlement of transactions, encouraging the participation of Fintech in PAPSS via the banks and expanding PAPSS to all the banks’ current digital channels such as mobile app banking and e-banking.
Prof. Benedict Oramah, President of Afreximbank, commented.
“The signature of these MoUs marks a remarkable step 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”.
The Chief Executive Officer of PAPSS, Mr Mike Ogbalu III, expressed enthusiasm about these collaborations.
“These partnerships with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group mark a significant milestone in the journey toward a more integrated and efficient African banking landscape.
“ By embracing PAPSS’ Commercial Bank Settlement Model, these banks are helping build a robust continental platform for fostering cross-border payments, thereby paving the way for financial inclusion and substantial continental economic development.”
Also commenting on the signing was H.E. Wamkele Mene, Secretary General of the AfCFTA.
“The introduction of the new PAPSS Model for onboarding African Commercial Banks and the signing of the MoUs with the five African Commercial Bank Groups signifies a bold step towards the full operationalisation of PAPSS.
“For the benefit of African traders and SMEs in the implementation of the AfCFTA Agreement.”
The News Agency of Nigeria (NAN) reports that the MOUs will be put into effect gradually in partnership with central banks in the countries where the five Group Banks operate.
Customers of the banks in Africa will be informed through the usual channels of communication as soon as the service becomes available in their countries.
PAPSS and the banks will be working to make the service available toward the end of 2023. (NAN) www.nannews.ng
Edited by Vivian Ihechu
Published By
Has also recently published
HealthNovember 7, 2024Cardiac Arrest: Foundation trains 105 FAAN staff on response
Food SecurityNovember 7, 2024How agricpreneurs contribute to food security, wealth creation
HealthOctober 30, 2024Foundation, LUTH record 1st feat in bone marrow transplant
EnvironmentOctober 28, 2024How WASH facilities foster hygiene practice in Ogun community
