Single currency to save Africa US$5 billion annually in transfers - Afreximbank President

The use of the Pan-African Payment and Settlement System (PAPSS) will save Africa a sum of US$5 billion annually in intra-Africa transfers, President and Chairman of Afreximbank, Professor Benedict Oramah has said.

He said the use of PAPSS will expedite the payment of goods and services on the continent as local investors will settle their debt in the local currency of where the items were bought.

He stressed that with PAPSS, every African currency will become convertible within Africa.

Making this known at the 30th Afreximbank Annual Meeting held in Accra on Monday, June 19, 2023, Professor Oramah said, "The Pan-African Payment and Settlement System (PAPSS) is up and running, which will save the continent 5 billion US dollars in intra-African transfer changes. It will also expedite and enable payments for intra-African trade in African currencies. It is now possible for a Gambian to buy Nigerian urea fertilisers using Gambian Dalasi to purchase Naira; for a young Ghanian to pay for holidays in Seychelles in Ghanaian Cedi, and for a small farmer in rural Zambia to stream her favourite Nollywood movie paying in Zambian Kwacha."

He further said, "Very soon, we will domesticate all intra-African payments and extend the same to the CARICOM, where just a few days ago, the Association of CARICOM Central Banks adopted PAPSS as their preferred payment infrastructure for a pilot project. By this singular move, we are one step closer to a full integration of African and CARICOM economies. With PAPSS, every African currency will become convertible within Africa."

The use of PAPSS, which is operational in some countries including Ghana will cut intermediaries who contribute to financial loss to businesses as the dependencies on foreign currencies, especially the US dollar will be cut short.

Meanwhile, Professor Oramah has noted that Africa Assurance Centres will be established across the continent.





ESA/MA