Ecobank Group, a leading pan-African banking Group, and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to simplify the settlement of cross-border transactions for Ecobank and its subsidiaries.
The MoU was signed during the opening ceremony of the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana. The function was graced by the President of the Republic of Ghana and other African heads of state and many other dignitaries.
PAPSS, established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, is a financial infrastructure that ensures secure and efficient cross-border payments, promoting intra-African trade.
During the ceremony, PAPSS introduced a new settlement model called the Commercial Bank Settlement Model, which allows commercial banks to manage their settlement accounts and liquidity.
“By utilizing PAPSS, Ecobank and its affiliates in 33 countries with over 32 million customers can expedite fund transfers, ensuring transparency and compliance. This partnership aligns with the African Union’s goal of enhancing financial connectivity and promoting intra-African trade, contributing to the growth of the African economy,” noted the press release.
The Chief Executive Officer of Ecobank Group, Mr Jeremy Awori emphasized the importance of partnerships like PAPSS for the success of the AfCFTA and the economic development of Africa.
He expressed commitment to the partnership and highlighted the potential for increasing intra-African trade by enabling efficient payments and collections in African currencies.
“This partnership ensures that all partner banks and PAPSS can expand their reach rapidly and enable greater and wider intra-African trade. Today, we begin to change and rewrite the narrative of low intra-African trade by removing the barrier to efficient and instant payments and collections in African currencies,” he noted.
The CEO of PAPSS, Mr Mike Ogbalu III, expressed gratitude for the cooperation of Ecobank Group, highlighting PAPSS as a transformative payment system for cross-border transactions in Africa.
Through this partnership, Ecobank Group and its subsidiaries will gain access to PAPSS’s advanced platform, enabling seamless settlement of cross-border transactions.
This streamlined experience will facilitate increased trade and economic cooperation across Africa.
The implementation of this agreement will be carried out gradually in collaboration with the central banks of the countries where Ecobank Group operates.
Customers in Africa will be notified through regular communication channels once the service becomes available in their respective countries. PAPSS and Ecobank Group aim to make this service available from January 2024.