Pan-African Payment and Settlement System will transform trade across the continent, says CEO Mike Ogbalu

The Pan-African Payment and Settlement System (PAPSS) has been making waves across the African continent since its launch earlier this year. The system, which enables payment transactions and alleviates trade issues across more than 40 currencies, was introduced by the Africa Export-Import Bank (Afrexim) in partnership with the African Union (AU) and the African Continental Free Trade Area (AfCFTA). Mike Ogbalu, CEO of PAPSS, recently sat down with CNBC Africa to discuss the progress and impact of the platform. Ogbalu highlighted the successful implementation of PAPSS in 12 African banks, noting that the journey has been met with excitement and positivity. Since the launch in Accra on January 10th, significant progress has been made, with live transactions already taking place in Nigeria, Ghana, Gambia, Guinea, Southern, and Liberia. Ogbalu emphasized the enthusiasm and support from various stakeholders, including central banks, commercial banks, and heads of state. When asked about challenges faced during the onboarding process, Ogbalu acknowledged the varying experiences with different institutions but expressed overall satisfaction with the progress. He revealed plans to expand PAPSS to additional central banks, with 15 of the continent's largest banks gearing up to go live on the platform. The CEO highlighted the early success of live transactions between central banks and the integration of the service by commercial banks onto their channels. Looking ahead, Ogbalu underscored the pivotal role of PAPSS in facilitating trade and emphasized the importance of seamless payments in driving economic growth. He outlined ambitious goals for the platform, including the inclusion of key economies from different regions by the end of the year. Ogbalu projected that the system would not only benefit large businesses but also empower small enterprises and fintechs to expand their market reach across the continent. In terms of expansion, Ogbalu revealed plans to onboard key countries from North, South, East, West, and Central Africa onto the PAPSS network. While acknowledging the varying pace at which countries may join, he expressed confidence in the gradual but significant progress that will be made. Ogbalu also discussed the consumer-level rollout, noting that commercial banks are expected to extend the service to their customers, with a focus on providing solutions for individuals and small to medium-sized enterprises. The CEO highlighted the potential cost savings and efficiency gains that PAPSS could bring, estimating that the continent currently loses around $5 billion in cross-border transaction charges. By streamlining the payment process and making transactions instant, Ogbalu believes that trade across the continent will thrive, leading to increased economic activity and savings for businesses and consumers alike. In conclusion, the Pan-African Payment and Settlement System is poised to revolutionize trade and payments across Africa, laying the foundation for a more interconnected and prosperous continent.