New payment system for strengthening internal African trade is going into operation - Emerging Markets

A new continent-wide payment system that aims to strengthen African Fiat currencies and boost internal African trade was recently put into operation. Discussions about the admission of other African countries are still in progress.

SMU The main beneficiaries of the payment system

A new African payment system, the Pan-African Payment and Settleement System (PapSS), recently went into operation in Ghana and prepared the prerequisites for its introduction on the entire continent. The payment system is intended to strengthen African Fiat currencies and boost internal African trade.

The payment system - the idea of the African Union, Afreximbank and An attempt to reduce the dependence of African countries on the US dollar. However, as a techcabal test report states that only seven states Countries - all members of the West African currency zone (Wamz) - were part of the pilot phase.

These savings will allow the SME to scale, as Mike Ogbalu, the CEO of Papss, explains.

"The market launch marks an important milestone in the seamless connection of African markets. There will be a new impulse to scale more easily throughout Africa, and probably saves more than $ 5 billion in transaction costs every year," said OGBALU.

improved cross -border trade

Just like OGBALU, which insists that the new payment system could help the continent to save billions of dollars, Pamela Coke-Hamilton, a managing director of the International Trade Center, claims that the new payment system will help the African continent to dismantle commercial barriers. The managing director said:

ITC prepares companies to benefit from Papss by creating new opportunities for growth in cross-border e-commerce and sustainable trade.

The TechCabal report indicates that the discussions about the admission of other African central banks are still going. The report also notes that Africa has come closer to a uniform currency for the entire continent through the new payment system.

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Terence Zimwara

Terence Zimwara is an award -winning journalist, author and writer from Zimbabwe. He wrote in detail about the economic problems of some African countries and how digital currencies Africans can offer an escape route.

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