the project is expected to boost the various currencies across the continent amid calls for the adoption of a common currency in the region. PAPSS is expected to transform how payments are made across borders as a cross border, financial market infrastructure.
The System aims to simplify historical complexities and costs attached with making payments across Africa’s borders, as well as to provide operational efficiencies which open up vast economic opportunities. Backed by cutting-edge technology connecting African banks, the payment and settlement system also facilitates instant payments made by originators and beneficiaries in their local currencies, anywhere in Africa.
According to Ogbalu, only 20 per cent of the payments made in Africa wind up within the continent, while 80 per cent were going through the West before returning Africa. This, he said, leads to an increase in cost of payment, resulting in a loss of $5billion annually in payment charges. “PAPSS will help address the high payment cost challenge facing the continent,” he said.
The PAPSS chief executive further noted that the security of the platform has been ensured by the deployment of security systems in both the design and operational level. Discussions are ongoing with central banks and commercial banks across Africa to bring them on board the PAPSS platform, he added. Ogbalu revealed that the System has already been successfully piloted in the West African Monetary Zone and has reached the operational stage offering live payments services.
