Browsing: PAPSS

  • It is not easy to create a common currency since it needs the creation of a central monetary system for several nations
  • The AU and ECOWAS should reconsider their approach—a common physical currency—and move their attention to building a common digital currency, as the EU is doing
  • With the establishment of the Pan-African Payment and Settlement System (PAPSS), which allows for the simple conversion of numerous African currencies, some progress—or maybe too little—has been achieved
  • When turned into digital money, Africa’s weak currencies have little chance against stablecoins backed by the US dollar

It is not easy to create a common currency and it would need the creation of a central monetary system for several nations.

This is a regime that, given the diverse economic demands of countries, may be judged undesirable for some member states. Africa’s desire for economic and monetary integration dates back many years.

African Union

  • Financial inclusion efforts across the industry have genuinely transformed millions of lives
  • Traditional financial institutions have typically been less nimble and slower to adapt resources to meet ‘last mile’ customers.
  • 4G Capital augments technology with human resources and tackle the root cause to business and finance failures 

Microfinance has been hailed as a critical cog in Africa’s development.

The continent, whose population is projected to almost double by 2050, is fertile ground for those seeking to bridge the financing gap.

Banking systems have locked out a majority of Africa’s populations from the sector whose effects can now be felt as neo-banks and other financial institutions crop up across the continent.

Read: Shift from the dollar with Pan-African Payment System launch

As of 2020, Africa had an estimated 1.34 billion people with Nigeria, Ethiopia and Egypt being the most populous countries at the time. By 2050, these numbers will almost be …

  • PAPSS will enable instant, cross-border payments in local currencies between African markets
  • PAPSS is set to boost intra-African trade significantly by simplifying cross-border transactions and reducing dependency on hard currencies
  • PAPSS is a collaboration between some of the continent’s leading institutions

In September, the African Export-Import Bank (Afreximbank) and AfCFTA Secretariat announced the operational roll-out of the Pan-African Payment and Settlement System (PAPSS).

The revolutionary Financial Market Infrastructure is meant to enable instant, cross-border payments in local currencies between African markets.

PAPSS is set to boost intra-African trade significantly by simplifying cross-border transactions and reducing dependency on hard currencies for these transactions. The system also underpins the implementation of the African Continental Free Trade Area (AfCFTA).

Read: Good week for Kenyan SMEs with American deals signing

The full implementation of PAPSS will serve as a continent-wide platform for processing, clearing and settling intra-African trade and commerce payments. This will leverage …