Back to the complete issue
Monday, 17 January 2022

Afreximbank sets up pan-African payment system to spur trade

Afreximbank sets up pan-African payment system to spur intra-continental trade: African economies could save more than USD 5 bn per year in transaction costs thanks to a new platform from the African Export-Import Bank (Afreximbank), Ghanaian President Nana Akufo-Addo said at the platform’s launch, according to an Afreximbank statement. The Pan-African Payment and Settlement System (PAPSS) platform is meant to boost trade by facilitating cross-border payments in the African Union’s Continental Free Trade Area (AfCFTA).

What does PAPSS do? Under the new system, Afreximbank will provide settlement guarantees and overdraft facilities to settlement agents. The goal is to cut the cost and speed of cross-border payments, lower liquidity requirements for commercial banks on the payments front, and strengthen oversight by central banks.

Next steps: President Akufo-Addo called on all central banks in Africa to sign up to the scheme.

IN OTHER AFREXIMBANK NEWS- African nations to get EUR 150 mn for vaccine, sustainable projects: The French Development Agency (AFD) and African Export-Import Bank (Afreximbank) have signed a EUR 150 mn framework of intent to support the African Vaccine Acquisition Trust (AVAT) with purchase backing and payment plans for state vaccine purchases, according to a statement.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.