AfCFTA – Pan African Payment System (PAPSS) can Save Nigeria $ 5 billion a Year

The AfCTA has affirmed that the launch of the Pan-African Payment & Settlement System (PAPSS) will economize and save Africa $5 billion.

Wamkele Mene, Secretary-General of AfCFTA, announced this in Accra, Ghana, during the commercialized launch of the PAPSS.

PAPSS Is a cross-border, financial market infrastructure enabling payment transactions across Africa and ensures instant or near-instant transfer of funds between originators in Africa.

 “The great liberation struggle heroes of our continent over 60 years ago had a vision of an integrated market in Africa are rejoicing today because the dream of an integrated Africa is becoming a reality in our lifetime,”

“How fitting it is, therefore, that the commercial launch of the PAPSS is taking place here in Ghana, a country that has always been at the intellectual and philosophical vanguard of Pan-Africanism.”

He further added that the payment system will develop efforts of achieving pan-African payments and settlements system, which will empower reliance on third currencies and improve intra-Africa trade.

His words “The commercial roll-out of the PAPSS is timely and set to boost intra-Africa trade significantly by making cross-border payments less reliant on third currencies,” . “It is set to save the continent up to $5 billion annually, which is the amount currency convertibility costs Africa.’’

Wamkele Mene explained that the effects of the COVID-19 pandemic has been disastrous, leading to border closure and supply chain issues with movement of goods becoming harder and in availability of people to manage goods movement.

He said “In the midst of this, our heads of state took the bold decision to commence trading under the very difficult conditions that were caused by the COVID-19. Since the commencement of trading under the AfCFTA on Jan 1, 2022, significant improvements were recorded in other key aspects of the implementation of the agreement,” .