Pan-African Cost and Settlement System Launched
Ghana President H.E Nana Addo Dankwa Akufo-Addo, represented by the Vice President H.E Dr. Mahamudu Bawumia immediately in Accra, hosted and presided over the business launch of the Pan-African Cost and Settlement System (PAPSS), observing that the ground-breaking platform will save Africa greater than US$5 billion yearly in fee transaction prices, whereas it performs an more and more vital function in accelerating the continent’s transactions underpinning the operationalisation of the AfCFTA.
President Nana Akufo-Addo complimented Afreximbank and AfCFTA Secretariat for the institution of the fee system citing PAPSS as a serious leap in releasing the continent from overdependence on exterior gamers and components in reaching a protracted yearned-for acceleration in intra-continental commerce and funding. “This launch is a results of many months of arduous work, resolve and dedication in direction of reaching set aims for the expansion of the continent in commerce. All Central Banks in Africa should now be a part of up and guarantee seamless switch of funds deploying this most sensible and necessary African answer to an African drawback,” added President Nana Akufo-Addo. He commented on the pan African significance of Ghana internet hosting the occasion as a harbinger of the hard-won battle for financial self-determination following the political decolonisation of the continent over 60 years in the past.
PAPSS, developed by African Export-Import Financial institution (Afreximbank), is predicted to spice up intra-African commerce by remodeling and facilitating fee, clearing and settlement for cross-border commerce throughout Africa.
Prof. Benedict Oramah, President and Chairman of the Board of Administrators of Afreximbank, stated in his remarks: “We’re keen to construct upon the African Continental Free Commerce Space’s creation of a single market all through Africa, and PAPSS gives the state-of-the-art monetary market infrastructure connecting African markets to one another thereby enabling prompt cross-border funds in respective native African currencies for cross-border commerce. Afreximbank as the primary Settlement Agent for PAPSS, gives settlement ensures on the fee system and overdraft services to all settlement brokers, in partnership with Africa’s taking part Central Banks. PAPSS will successfully get rid of Africa’s monetary borders, formalise and combine Africa’s fee techniques, and play a serious function in facilitating and accelerating the massive AfCFTA-induced development curve in intra-African commerce.”
The PAPSS launch occasion was graced by the presence of Chief Olusegun Obasanjo, former President of the Federal Republic of Nigeria and Chairman of the IAFTA Advisory Council, and H.E Mahamadou Issoufou – former President of Republic of Niger who’s acknowledged as a champion in driving the institution of the AfCTA Initiative. H.E Issoufou lauded the far-reaching imaginative and prescient and dedication of African leaders in establishing the world’s largest free commerce space. That includes shows by H.E. Wamkele Mene, Secretary Normal AfCFTA Secretariat; Godwin Emefiele, Governor, Central Financial institution of Nigeria and Chairman PAPSS Governing Council, the launch was witnessed by representatives of the Presidents of Egypt and Uganda (and DRC representing Chair of AUC) who proferred their respective congratulations and help for the launch of PAPSS, a possible game-changer in Africa’s financial future.
In his presentation, PAPSS CEO Mr. Mike Ogbalu emphasised that the fee system shouldn’t be designed to compete with or substitute present fee techniques, however to facilitate the connectivity stage that brings all funds techniques collectively into one community that’s interoperable, environment friendly and reasonably priced. “PAPSS is designed to make our currencies regain worth to cultivate intra-Africa funds on this journey in direction of African prosperity, whereas offering the superhighway which connects others to succeed in each a part of this continent as we search to create the Africa that We Need.”
On his half, the AfCFTA Secretary Normal H.E Wamkele Mene appreciated the function and dedication of the Continent’s Heads of States and Governments by the African Union, saying that their sturdy political will, continues to be the bedrock of progress in direction of a full implementation of AfCFTA that has now been strongly boosted with the business launch of the PAPSS.
In response to Afreximbank, PAPSS gives the answer to the disconnected and fragmented nature of fee and settlement techniques which have lengthy impeded intra-African commerce. Previous to PAPSS, over 80 per cent of African cross-border fee transactions originating from African banks needed to be routed offshore for clearing and settlement utilizing worldwide banking relationships. That posed a number of challenges, starting from fee delays to operational inefficiencies and compliance issues for the disparate regional fee techniques.