Zim adopts top-notch continental payment system

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ZIMBABWE has become a part of the three first Southern African countries to embrace the efficient Pan-Africa Payment System (PAPPS) in a bid to improve the ease of payments for local businesses when transacting beyond the borders.

PAPSS was jointly created by the Africa Continental Free Trade Area (AfCFTA) Secretariat and the African Export and Import Bank (Afreximbank) to allow for instantaneous cross-border payments in local currency.

The African Union also gave a hand in the development of the platform guided by the objective of promoting trade and commerce between corporate and retail clients.

This financial market infrastructure facilitates real-time settlement of intra-African trade and payments in African currencies, across the continent.

By uniting central banks from across Africa, PAPSS seeks to address the existing challenges faced by African businesses and individuals in accessing efficient and cost-effective cross-border payment services.

In a recent update, trade promotion agency, ZimTrade revealed that PAPPS has to date steadily expanded into four regions.

“This network includes 13 central banks, with 6 in the West African Monetary Zone (WAMZ) region Nigeria, Ghana, Guinea, Gambia, Liberia, and Sierra Leone, three in East Africa Kenya, Rwanda, and Djibouti.

“In Southern Africa, Zimbabwe is among the first three countries to embrace the system with two other nations being Zambia and Malawi,” said ZimTrade.

The trade promotion agency said the payment system brings together a network of central banks, commercial banks, payment service providers, and other financial intermediaries, fostering economic benefits by simplifying the payment landscape across the African continent.

“Among other benefits, PAPPS is expected to address the challenges and facilitate intra-African trade by providing an alternative to the current expensive and lengthy correspondent banking relationships, through a simple, low-cost and risk-controlled instant payment clearing and settlement system,” added ZimTrade. – NewZim