Ecobank Group has partnered with the Pan African Payment and Settlement System (PAPSS) and signed a Memorandum of Understanding (MoU) aimed at enhancing cross-border transactions across Africa.
As part of the partnership, PAPSS introduced the Commercial Bank Settlement Model, which allows commercial banks to open and fund their own settlement accounts at Afreximbank, enabling them to manage liquidity according to their banking needs.
By leveraging the capabilities of PAPSS, Ecobank and its subsidiaries, operating in 33 countries and serving over 32 million customers, will enhance the transfer of funds, ensuring transparency and compliance under regulatory supervision.
The collaboration aligns with the African Union’s vision of promoting intra-African trade and economic integration through improved financial connectivity. The partnership between Ecobank and PAPSS is expected to contribute to the growth and development of the African economy.
Importance of the Partnership with PAPSS for AfCFTA
Mr. Jeremy Awori, the Chief Executive Officer of Ecobank Group, emphasized the importance of partnerships like the one with PAPSS for the success of the AfCFTA and the financial integration and economic development of Africa.
Mr. Jeremy Awori expressed commitment to the success of PAPSS and highlighted the potential for expanding intra-African trade by removing barriers to efficient and instant payments and collections in African currencies.
Mr. Mike Ogbalu III, the Chief Executive Officer of PAPSS, expressed gratitude for the cooperation of Ecobank Group and stated that the partnership validates PAPSS as the payment system that will transform cross-border transactions in Africa.
Ecobank Group to Gain Access to PAPSS’s Advanced
Through this collaboration, Ecobank Group and its subsidiaries will gain access to PAPSS’s advanced platform, enabling them to seamlessly settle cross-border transactions. By simplifying the complexities associated with traditional payment systems, the bank aims to provide its customers with a more convenient and streamlined experience, ultimately fostering increased trade and economic cooperation throughout Africa.
The Implementation of this MoU will be carried out gradually in partnership with the Central Banks in the countries where Ecobank Group operates. Customers in Africa will be informed through regular communication channels once the service becomes available in their respective countries. The goal is to make this service available starting from January 2024.
PAPSS, established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, is a financial market infrastructure designed to provide a secure and efficient channel for processing cross-border payments. It aims to ensure speed, affordability, and reliability in order to facilitate intra-African trade.
PAPSS addresses the historic challenges of making payments across African borders, adding value through a common African market infrastructure for all stakeholders, from governments, banks and payment providers to corporates, small enterprises and individuals.
Commercial banks, payment service providers and other financial intermediaries connecting to PAPSS benefit from a simplified process that reduces the costs and complexities of foreign exchange for cross-border transactions between African market; Provides them with an instant and secure cross-border payment capability to their customers across Africa.
It is a platform that enables innovation in cross-border trade and access to new African markets.
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