Remit 1% of revenue from PAPSS vital for participating banks – GIFTic proposes

Chief Executive Officer of the Ghana International Trade and Finance Conference (GIFTic) Selassie Kofi Ackom has proposed that a portion of transactional revenue be made available to participating banks under the Pan-African Payment and Settlement System (PAPSS).

Kofi Ackom explained that to guarantee the success of the PAPSS, a minimum of one percent of all transaction revenues was be remitted to key apex banks as the adoption of the African Continental Free Trade Area takes off.

“Digital payment systems can make a great mark in the formal and informal trading sector if the requisite structures of regulation, trust and policy are put in place,” Ackom said.

Chief Executive of the GIFTic further tabled a number of recommendations including the formulation of policies to regulate digital currencies and investments in financial technology.

As part of efforts to digitize payments and ease transactions under the African Continental Free Trade Area for member countries, PAPSS is expected to have its pilot program completed by the end of 2021.

The system which is being developed under the supervision of the African Export-Import Bank currently has some six African countries including Ghana currently undertaking the pilot phase.

The PAPSS is anticipated to minimize the financial cost of cross-border trade and improve financial integration as well as boost intra-African trade and investment competitiveness.

The system will for example allow a small trader group in Ghana to freely import goods from Sierra Leone, using the Ghana Cedi without making that purchase in a third currency. The system will also reduce the cost and time of doing business.