Afreximbank Plans Domestication of all Intra-Africa Payment with PAPSS

Gilbert Ekugbe

The African Export-Import Bank (Afreximbank) has announced plan to domesticate all intra-Africa payment deploying the use of Pan-African Payment and Settlement System (PAPSS).

This was even as the committee of Carribean Community and Common (CARICOM) central banks’ have all adopted the PAPSS as their preferred payment infrastructure for their pilot inter regional project.

The President, Afreximbank, Benedict Oramah, while speaking at the 30th anniversary of Afreximbank in Ghana, said with PAPSS, every African currency would become convertible within Africa as well as every CARICOM currency would also become convertible even in Africa.

“Very soon, we will be able to domesticate all intra-Africa payment and extend the same to the CARICOM. PAPSS is up and running which will save the continent $5 billion in intra -Africa transfer chains and would also expedite and enable payment for intra-Africa trade in African currencies.

“It is now possible for a Gambian to buy Nigeria’s urea fertilisers using Gambian dalasi to purchase naira,” he added.

According to him, by the singular move, Afreximbank was one step closer to a full integration of African and CARICOM economies, stressing that PAPSS was becoming an instrument for bringing African economies together.

He, however, stated that Afreximbank and the African Continental Free Trade Agreement (AfCFTA) secretariat have established the AfCFTA adjustment fund intended to among others compensate eligible countries for tariff revenue losses arising from the new trade regime that the AfCFTA presents.

He pointed out that the fund would also support the private sector adjust in an orderly manner to the new arrangement

He noted that to deal with the considerable intra-Africa finance gap, Afreximbank disbursed over $20 billion in five years to 2021 and projects to double the disbursement to $40 billion by 2026 to support intra-Africa trade.

“We are committed to the adjustment fund because we believe that without it, some AfCFTA participating States may find it difficult to open their borders for trade under the agreement,” he averred.

The Afreximbank boss added that the Dangote refinery and Petrochemical industries to which Afreximbank is the largest lender puts Africa on the world map of the production of petroleum products, petrochemicals, ammonia and fertilisers.

“It will create at least 135,000 jobs and generate $21 billion in annual export revenues for Nigeria. These are the kinds of investments and transformation that are possible if we remain steadfast behind our institutions,” he added.