Transforming intra-African trade through PAPSS

The Pan African Payment and Settlement System (PAPSS) is making significant strides in transforming intra-African trade. Mike Ogbalu, the CEO of PAPSS, shared in an interview with CNBC Africa during the 30th Afreximbank Annual Meetings in Accra, that the platform is currently in its expansion phase. Trades have already commenced on the PAPSS platform across West Africa, with plans to integrate additional countries such as Zimbabwe, Zambia, and Djibouti by leveraging partnerships with some of the largest banks on the continent. Collaborating with institutions like Ecobank, UBA, Access Bank, KCB in Kenya, and Standard Bank, PAPSS aims to extend its services to over 30 countries in Africa within the next six months. This innovative approach of working with key players in the industry reflects a shift towards enhancing accessibility and efficiency in cross-border payments. Ogbalu emphasized the pivotal role of payments in driving economic growth, stating that addressing payment challenges is crucial for Africa's prosperity. By facilitating seamless transactions, PAPSS is not only benefiting central and commercial banks but also reaching out to small businesses, enabling them to engage in cross-border trade effectively. Furthermore, the platform is designed to accommodate fintech solutions, allowing smaller tech providers and payment companies to scale regionally. Central banks play a crucial role in governing these financial services, ensuring compliance and regulation. In partnership with PAPSS, these fintechs can now expand their innovative solutions across borders without hindrances. As PAPSS expands its reach, it continues to monitor progress, striving to optimize transaction efficiency and enhance trade facilitation. Live trades within West Africa are already demonstrating rapid settlement processes, with beneficiaries receiving value nearly instantly. The platform's efficiency has surpassed initial expectations, with transactions being completed within seconds. The incorporation of third-party solutions aims to extend these benefits to remote areas, bridging the gap and supporting businesses at the grassroots level. PAPSS not only aims to streamline cross-border payments but also intends to collaborate with existing payment providers, offering a pathway for them to scale their services across the continent. Recognizing the importance of strong institutions in driving economic development, Ogbalu highlighted the crucial role of Afreximbank in bolstering trade and export activities in Africa over the past three decades. With a track record of promoting economic growth and fostering collaboration among African states, Afreximbank has been instrumental in unlocking various value chains and driving the continent's progress. Ogbalu emphasized the significance of reinforcing institutions like Afreximbank to support countries in their development agendas and ensure sustainable economic growth across Africa.