PAPSS, the Pan-African Payment and Settlement System, has announced the signing of Memorandums of Understanding (MOUs) with five African multinational commercial banking groups: Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group. These groundbreaking partnerships aim to revolutionise cross-border transaction settlements across Africa, leveraging the extensive network of subsidiaries and representative offices in major economic centres across the continent.
The signing of these MOUs took place on June 19 2023, during the opening ceremony of Afreximbank’s 30th Anniversary Celebrations and 30th Annual Meetings in Accra, Ghana. The event witnessed the presence of African and Caribbean Heads of State, Prime Ministers, continental policy and governance institutions, as well as international institutions.
This significant milestone signifies a monumental leap towards seamless cross-border trade payments across the nearly 40 countries covered by these banks. The collaboration between PAPSS and African commercial banks aims to enhance efficiency, transparency, and reliability in intra-African settlements. By adopting PAPSS’s cutting-edge settlement model, operations will be streamlined, empowering businesses through a secure and technologically advanced platform for cross-border transactions.
As part of the partnership, Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group will closely collaborate with PAPSS to ensure the seamless integration of PAPSS into their existing systems. This collaborative effort will involve opening up their African footprints to PAPSS, facilitating transaction settlements, encouraging Fintech participation through the banks, and expanding PAPSS to all the banks’ current digital channels, such as mobile app banking and e-banking.
Commenting on the signing, Benedict Oramah, President of Afreximbank, said, ‘The signature of these MOUs marks a remarkable step towards the realisation of the aspirations of Africa’s foreleaders, who envisioned the creation of a payment and clearing union about six decades ago. It also draws us closer to domesticating cross-border payments by enabling payments for cross-border trade in African currencies while strengthening African currencies.’
Wamkele Mene, Secretary General of the AfCFTA, also said, ‘The introduction of the new PAPSS Model for onboarding African Commercial Banks and the signing of the MOUs with the five African Commercial Bank Groups signifies a bold step towards the full operationalisation of PAPSS for the benefit of African traders and SMEs in the implementation of the AfCFTA Agreement.’
Mike Ogbalu III, the Chief Executive Officer of PAPSS, conveyed his enthusiasm about these collaborations, highlighting that ‘these partnerships with Access Bank Group, Ecobank Group, KCB Group, Standard Bank Group, and UBA Group mark a significant milestone in the journey toward a more integrated and efficient African banking landscape.’ He emphasised that by embracing PAPSS’s Commercial Bank Settlement Model, these banks are contributing to the establishment of a robust continental platform for facilitating cross-border payments, ultimately paving the way for financial inclusion and substantial economic development across the continent.
The implementation of these MOUs will be a gradual process in collaboration with central banks in the countries where the five Group Banks operate. Customers of the banks across Africa will be informed about the service availability through regular communication channels once it becomes operational in their respective countries. PAPSS and the banks will work towards making this service accessible by the end of the year.
