Vice President Dr Mahamudu Bawumia tasked central bank governors across Africa to facilitate collaboration among key stakeholders to help integrate payment systems on the continent.
According to the World Economic Forum, payments, which have always been the cornerstone of trade, will be essential for intra-African trade, which covers 55 countries with varied financial and monetary systems, especially with the implementation of the free zone. – African continental exchange.
Cross-border payments in Africa typically involve a third currency, such as the US dollar or the euro, resulting in high costs and long transaction times. In an effort to improve the situation, the African Import-Export Bank (Afreximbank) and the AfCFTA Secretariat announced in September this year, the operational deployment of the Pan-African Payment and Settlement System (PAPSS), an infrastructure revolutionary financial marketplace to enable instant cross-border payments in local currencies between African markets.
In his remarks as guest of honor at the Association of African Central Banks’ annual virtual conference on payment systems organized by the Bank of Ghana, under the theme âThe role of an integrated payment system for intra-African trade, âVice President Dr. Mahamudu Bawumia noted that Africa has been primed by the push for digitization through COVID to provide the infrastructure and payment systems necessary to boost the trade.
âAchieving the noble objectives of AFCFTA will largely depend on the establishment of a payment and settlement system that is robust, secure and guarantees the finality of payment. Let me say that with the added push for digitization brought by the pandemic, Africa is now better positioned to provide the infrastructure and integrated payments systems needed to boost trade. “
Dr Bawumia meanwhile tasked central bank governors across Africa to facilitate collaboration among key stakeholders to help integrate payment systems on the continent.
âIn conclusion, let me stress again that stakeholder collaboration is necessary for the proper functioning of an integrated regional payment system. “