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By Japhet Davidson

For quick , efficient and effective financial transactions, African countries have been urged to embrace the Pan-African Payment and Settlement System (PAPSS), a platform that facilitates instant cross border payments in local African currencies.

This was the submissions of experts during the 23rd AGM of International Chamber of Commerce Nigeria (ICCN) and Post-AGM Talk held in Lagos.

Speaking on the topic, the workings of Pan African Payment and Settlement System (PAPSS), the guest speaker, Mr. Mike Ogbalu III, CEO, Pan African Payment and Settlement System at African Export-Import Bank (Afrexim Bank) who painted a graphic picture of the challenges of trading and transactions among African countries before the establishment of PAPSS stated that African do not have a central currency and has not satisfied the issue of payment among themselves, as most of the transactions done in Africa have to travel outside the borders before coming back at a higher cost.

“Most cross-border payment transactions originating from African banks are cleared outside the continent, with less than 20% of the total payment flows being cleared in Africa.” It was the need to bridge that gap that PAPSS was established by Afreximbank.

According to him, Afreximbank is implementing PAPSS based on its mandate as contained in its establishment agreement.

Ogbalu 111 said that PAPSS is a common framework for transacting, clearing and settling cross-border transactions, including operating rules, business practices and standards, participation requirements and funding schemes, among others.

As a central financial participants market infrastructure (FMI) to support payment arrangements for the purpose of expanding the international trade of African States, it facilitates economic and financial integration of Africa, supports safe and efficient flow of payments across the continent, provides a centralized payment and settlement infrastructure, Operate independently of domestic payment systems and payment is instant and in local currencies

Chief Host and Chairman of ICC Nigeria, Mr. Babatunde Savage, who reviewed the events and opportunities of the body in the year commended the board members and other partners for their support and promised that “our relationship with our development partners, bilateral and multilateral institutions, member of the diplomatic corps, among others would be sustained.”

On PAPSS, he disclosed that the rationale behind the development of PAPSS, is to enable a revolution in the existing financial structures for cross-border economic transactions involving local currencies and urged all to embrace it.

Also speaking, Bamidele Osinlu, who represented the sponsors, First Bank , commended ICCN for their role in promoting business transactions in Nigeria. Pointing out that PAPSS, has come to revolutionise payments in Africa and asked all banks and other financial institutions to integrate PAPSS into their platform. The high-point of the event was the unveiling of the new ICCN logo that reflects the present nature of ICCN.