FYI: The Pan-African Payments and Settlement System (PAPSS)

PAPSS IS A CENTRALISED payment and settlement infrastructure for intra-African trade and commerce payments. This project which is being developed in collaboration with the African ExportImport Bank, Afreximbank will facilitate payments as well as formalise some of the unrecorded trade due to prevalence of informal cross-border trade in Africa.

It will also provide alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost and risk-controlled payment clearing and settlement system.

The benefits of PAPPS for crossborder payments include: • cost reduction; • reduction in duration and time variability; • decreasing liquidity requirements of commercial banks; • decreasing liquidity requirements of central banks for settlement as well as its own payments; and • strengthening Central Banks’ oversight of cross border payment systems. https://afcfta.au.int/en/ pan-african-payments-andsettlement-system-papss Image credit: modernghana.com, www.linkedin.com/feed/