The ratification of the African Continental Free Trade Agreement (AfCFTA) in 2020 presented an opportunity to revolutionise Africa’s economy. The primary goal is to increase intra-Africa trade by eliminating trade barriers like import and export taxes. Despite the impressive stride of the AfCFTA, barriers like border delays, high tariffs, infrastructural deficits, and the high cost of cross-border payments continue to impede regional integration.
Addressing cross-border payments necessitated the development of the Pan-African Payment and Settlement System (PAPSS). PAPSS is a centralised financial system aimed at facilitating cross-border payments across Africa. It facilitates payment between originators and beneficiaries in their respective local currencies.
In January 2022, the African Import-Export Bank (Afreximbank) and the AfCFTA secretariat launched PAPSS for commercial use after a successful pilot phase in the West Africa Monetary Zone (WAMZ)…..
To read more, check full article on The Guardian.