Bank of Africa (BOA) Ghana has announced its partnership with the Pan-African Payment and Settlement System (PAPSS) to launch financial market infrastructure (FMI) that will facilitate trade and other economic activities among African countries.
The partnership will enable customers of BOA-Ghana to trade and make payments within Africa, and at the same time have access to tens of thousands of end-users already connected across the platform’s growing community of financial institutions.
With several central banks joining the PAPSS infrastructure, it extends the payment system’s collective reach to millions more – with the resultant positive impact on intra-African trade.
According to BOA management, it is the vision of both PAPSS and the bank to leverage this platform in collaborating with other regional and continental cross-border payment systems to extend its range beyond African borders to support growth in trade and investments within the African continent.
Managing Director of BOA, Kobby Andah, explained that for now customers of the bank can originate PAPSS transactions from Bank of Africa-Ghana to other banks located in countries of the West African Monetary Zone (WAMZ): namely Nigeria, Liberia, Gambia, Guinea, and Sierra Leone; and in the near-future to the rest of Africa.
“This is a great feat for us at BOA-Ghana, and I take this opportunity to invite all our existing customers, especially small- and medium-scale enterprises (SME) and trade customers, to use this platform for all cross-border retail and trade transactions. PAPSS offers our customers the opportunity to receive and make payments within Africa in our Local currency – the Ghana cedi – without worrying about conversion rates,” he said.
The MD further stated that this partnership, coupled with the bank’s presence in over 16 countries in Africa and the robust systems and infrastructure of the BOA, strengthens the bank’s position as the lead trade bank of Africa.
Chief Executive Officer of PAPSS, Mike Ogbalu III, also expressed his enthusiasm for the partnership and said: “Through this partnership, we look forward to ensuring seamless and speedy cross-border transactions for Bank of Africa-Ghana customers. In fact, BOA clients can now originate, receive and settle payments in Ghana cedi, avoiding foreign currency risks and lowering transaction costs to boost banking services in Africa.
“At PAPSS, we are dedicated to enhancing African economies by providing innovative payment solutions that meet the needs of our partners and benefit the end-customers.”
The Pan-African Payment and Settlement System – PAPSS – is a centralised Financial Market Infrastructure that enables efficient flows of money securely across African borders, minimising risk and contributing to financial integration across the regions. PAPSS works in collaboration with Africa’s central banks to provide a payment and settlement service to which commercial banks and licenced payment service providers across the region can connect as participants.