The AfCFTA implementation began in 2020
PAPSS to save Africa more than US$5bn in payment transaction costs annually
The AfCFTA Secretariat is located in Ghana-West Africa
The Ghana Interbank Payment and Settlement System (GhIPSS) has disclosed moves to ensure intra-African payments to and from Ghana are made efficient once the Pan-African Payment and Settlement System (PAPSS) becomes fully operational.
According to Chief Executive GhIPSS, Archie Hesse, payments plaform, when fully operational would boost intra-African payments and minimize the financial cost of cross-border trade.
In an interaction with Citi Business News, Archie Hesse assured that key steps are being taken to ensure Ghana rakes for the full benefit of the PAPSS to improve financial integration especially with the introduction of the African Continental Free Trade.
“The role that we are going to play as the national switch is to connect to the PAPSS system. I know the Central Bank is taking a lead with that to design the flow and how we can all play in that space. But effectively all interbank transactions will emanate from the various financial institutions through GhIPSS to the Central Bank that is also connected to the PAPSS system and they will facilitate inter-country payment on how behalf,” Archie Hesse said.
“What we are going to do is to support the Central Bank in that regard and ensure that our system is connected to the PAPSS system. I know our team is working with the PAPSS system to ensure that connection is done. We are in the process and working to ensure that Ghana is not left behind,” he added.
Earlier in September this year, stakeholders commenced the operational roll-out of the PAPSS in local currencies. The move form parts of efforts to digitize payments and ease transactions under the African Continental Free Trade Area for member countries.
PAPSS is being developed under the supervision of the African Export-Import Bank and its full implementation is expected to save the continent more than US$5 billion in payment transaction costs each year.