How to make instant and secure trans-border payments in Africa

2022-05-03

What is this PAPSS? Can it solve Africa’s trans-border payments challenge? How will it benefit small businesses in Africa? How will it contribute to restoring the economies of African countries? Before Thursday January 13, 2022, over 80% of African cross-border payment transactions that originated from African banks had to be routed offshore for clearing and settlement using international banking relationships, which is costly & inefficient; as it takes between 2 to 14 days to complete and acts as...

What is this PAPSS? Can it solve Africa’s trans-border payments challenge? How will it benefit small businesses in Africa? How will it contribute to restoring the economies of African countries?

Before Thursday January 13, 2022, over 80% of African cross-border payment transactions that originated from African banks had to be routed offshore for clearing and settlement using international banking relationships, which is costly & inefficient; as it takes between 2 to 14 days to complete and acts as a barrier to intra-regional trade.

The long awaited Pan-African Payments and Settlement System (PAPSS) which was piloted in August 2021, and launched in January 2022, may prove to be the backbone upon which the promises of the Africa Continental Free Trade Area Agreement rests.

Joining Tony to discuss this, is an International Trade Policy and Law Expert, who serves as the Lead, Trade Enablement, in the National Action Committee on the AfCFTA in Nigeria, Olusegun Olutayo.

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