African states boosted by card scheme launch

A groundbreaking trade initiative by African states to formulate a financial payments and settlements platform that bypasses costly global systems, has taken a leap forward with the launch of the first pan-African card scheme, reports Mmegionline. The Pan-African Payment and Settlement System (PAPSS) is a centralised platform that enables participating African countries and their currencies to make payments across the continent’s borders, without the added costs of conversion to hard currencies, particularly the dollar. PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks and licensed payment service providers across the region can connect. Prior to the operationalisation of PAPSS, the continent was estimated to be losing $5bn annually through external intermediaries and currency conversions, a situation that was also limiting inter-African trade. In Abuja last week, at the Afreximbank annual meetings, officials launched the PAPSSCARD, the continent’s first Pan-African card scheme described as a major leap in Africa’s efforts to achieve financial sovereignty by ‘building resilient and independent payment systems, easing people travel and boosting trade integration’. Speaking at the launch, Afreximbank outgoing president and chairman Professor Benedict Oramah highlighted the significance of PAPSSCARD in reclaiming Africa’s financial autonomy. ‘For too long, Africa’s reliance on external payment systems has impeded trade, increased costs, and compromised control over our financial data,’ he said.

Full Mmegionline report