Access Bank Plc and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of cross-border transactions of the group, including the transactions of all their subsidiaries through PAPSS. 

The MoU was signed during the opening ceremony of the 30th Afreximbank Annual Meeting (AAM) held in Accra.

Established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, PAPSS is a financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost and reliability in order to facilitate intra-African trade. 

Settlement model

At the ceremony, PAPSS also introduced the Commercial Bank Settlement Model, a new settlement model which offers the commercial banks a window to open and fund their own settlement accounts at Afreximbank and manage their own liquidity according to their banking needs.

By leveraging the capabilities of PAPSS, Access Bank affiliates in more than 18 countries and 700 branches with over 60 million customers.

This will streamline and expedite the transfer of funds while ensuring transparency and compliance under the regulator’s supervision.

Additionally, the partnership aligns with the African Union’s vision of promoting intra-African trade and economic integration through enhanced financial connectivity.

By leveraging their combined expertise, Access Bank and PAPSS are poised to contribute to the growth and development of the African economy.

Global brand

Commenting on the signing, the Deputy Managing Director, Access Bank Plc, Victor Etuokwu said, “As a global brand with African heritage, driven by the purpose of making banking a positive force in Africa and beyond, we are committed to empowering African economies and promoting sustainable growth.

“We want to develop the society around us, supporting local entrepreneurs and investing in communities.

“This is why we partnered with Afreximbank’s PAPSS to facilitate intra-African trade and payments within Africa using local currencies of send and receive countries.

“This aims to facilitate and promote a more efficient payment and settlement of transactions across borders, improving the payment landscape in Africa.

“Leveraging our reach, through the PAPSS platform we will be offering seamless trade payments to our over 60m customers across all operations”.

He said  Access Bank Nigeria has now begun receiving inflows through the PAPSS platform, making it one of the first banks in Nigeria to do so.

Meanwhile, other countries in the WAMZ (West Africa Monetary Zone) region where PAPSS is being piloted, such as Ghana, Guinea, Gambia, Cameroon, and Sierra Leone, are currently undergoing governance requirements and will soon begin integrating the system.

“By the end of the year, additional subsidiaries will be in various stages of onboarding to the PAPSS platform.

“We strongly believe in the potential of the continent and are dedicated to driving positive change to create a lasting impact”.

Victor concluded.

SOURCE: GraphicOnline