Togo’s Ecobank Group is one of 5 major African commercial banks that have committed to the network of the Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border financial exchanges.
The financial institutions signed a Memorandum of Understanding (MoU) which will facilitate Ecobank and its subsidiaries in conducting cross-border transactions using the Pan-African Payment and Settlement System (PAPSS).
Other banks signing included:
- Ecobank (Togo)
- Access Bank (Nigeria)
- UBA Group (Nigeria)
- Kenya Commercial Bank (Kenya)
- Standard Bank (South Africa)
The signing occurred during the opening ceremony of the 30th Annual Assembly of Afreximbank (AAM) held in Accra, Ghana.
The above banks were represented by their CEO’s while the Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, represented the intercontinental bodies. Also present was Mike Ogbalu III, who is the CEO of PAPSS.
🚀Changing the way we process #payments throughout #Africa.
We are proud and grateful for this partnership with 5 of the largest African Group #Banks which will pave the way to instant cross border payments in local currencies for the implementation of the @AfCFTA. pic.twitter.com/iYBlyxbrvZ
— Pan-African Payment And Settlement System – PAPSS (@papss_africa) June 20, 2023
PAPSS is a financial market infrastructure established by the African Export-Import Bank (AfreximBank) and the African Continental Free Trade Area (AfCFTA). PAPSS aims to promote seamless and efficient cross-border payments and settlements within Africa.
“Partnerships such as the one we have signed on PAPSS are crucial for the implementation and success of the AfCFTA as well as for financial integration and economic development on our continent. We are committed to the success of PAPSS and are pleased to bring our expertise in payments and collections, across the 33 markets where we operate in Africa,” said Jeremy Awori, CEO of Ecobank Group.
The implementation of the MoU is expected to be a gradual process with the involvement and support of the relevant Central Banks of the countries involved. The target date for the online availability of the service is set for January 2024.
PAPSS has come to the limelight in recent times after President of Kenya, William Ruto, urged African leaders to ditch the US dollar by signing up to the Pan-African Payments System (PAPSS) in order to faciliate trade within the continent.
Ruto urged Africa to mobilize central and commercial banks to join PAPSS which was launched in 2022 to faciliate intra-Africa trade.
Follow us on Twitter for latest posts and updates
___________________________________
___________________________________
