In order to help African financial institutions and their clients facilitate international trade, Afreximbank has announced the commercial launch of Afreximbank Trade Payment Services, also know as “AfPAY.”
This was disclosed by Afreximbank via a Press release seen on it’s website titled “Afreximbank Trade Payment Services (AfPAY) launched”
AfPAY was created to address the banking issues that African countries were facing as a result of the exodus of many foreign banks from the region owing to costly regulatory and compliance requirements.
The report said “ African Export-Import Bank (Afreximbank) is delighted to announce the commercial launch of Afreximbank Trade Payment Services – or “AfPAY” – an intervention designed to facilitate the settlement of international trade on open account terms on behalf of identified African financial institutions and their clients.”
Afreximbank stated that the Financial Institutions on the continent had suffered due to the restriction in their access to international correspondent banking services.
The bank added that “this curtailment of trade lines effectively shut the entrance of our Financial Institutions to the rest of the world. Trade is the number one driver of growth, and banks’ inability to participate in trade transactions will lead to reduced growth in our economies and increased poverty.”
The program, according to Mr. Denys Denya, Executive Vice President, Finance & Administration, Afreximbank, will address the issue of access to reliable banking partners ready to support their international commercial operations. She said, “African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions. We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”
Across our member states, AfPAY, which has been in a pilot phase for more than a year, presently facilitates monthly payments totaling more than $500 million. Notably, Zimbabwe actively participated in the trial, deploying the solution in 20 of its financial institutions.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
Under its Pandemic Trade Impact Mitigation Facility (PATIMFA), the African Export-Import Bank (Afreximbank) has disbursed $150 million dollars to First Bank of Nigeria Ltd.
Titan Trust Bank (TTB) has received a $300 million Intra-African Investment Financing Facility from Afreximbank to help it acquire a controlling share in Union Bank of Nigeria (UBN) plc. The agreement was meant to improve the competitive dynamics of the Nigerian banking market while retaining confidence in the country’s financial services and overall financial stability.