- Partner AfCFTA to provide financing for SMEs
United Bank for Africa (UBA) Plc. and the Pan African Payment and Settlement System (PAPSS) have signed a memorandum of understanding (MoU) to facilitate settlements of cross-border transactions on the continent.
The MoU was signed by both organisations on the sidelines of the 30thAfreximbank Annual Meeting (AAM) opening ceremony in Accra, Ghana, on Monday.
During the event, UBA also signed an Agreement with AfCFTA to provide financial support to Small and Medium Enterprises (SMEs) in order to boost intra-Africa trade.
PAPSS, established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) secretariat, is a financial market infrastructure that provides a secure and efficient channel for processing cross-border payments; thus ensuring speed, affordable cost and reliability in order to facilitate intra-African trade.
UBA Group’s Deputy Managing Director, Muyiwa Akinyemi – who signed on behalf of the UBA Group, explained that by leveraging the capabilities of PAPSS, the bank’s subsidiaries in more than 20 countries with over 1,000 branches and 35 million customers will streamline fund transfers while ensuring transparency and compliance under the regulator’s supervision.
Muyiwa Akinyemi said: “UBA Group, in collaboration with AFREXIM Bank and PAPSS, was among the first commercial banks to implement PAPSS in five countries – Ghana, Nigeria, Guinea, Liberia and Sierra Leone – and with our vast presence in 20 countries across Africa, this partnership will facilitate seamless cross-border payment and be a further boost to UBA’s AfriTrade product that allows customers to trade across Africa”.
He added that with PAPSS, UBA customers will also be able to trade in countries where the bank is yet to leave its footprint.
Commenting on the partnership with AfCFTA, Akinyemi noted that UBA remains committed toward supporting SMEs in Africa, especially with the banks’ robust network which is spread across 20 countries – adding, “In UBA, we say your small business is big business”.
On his part, the Chief Executive Officer-PAPSS, Mike Ogbalu III said: “UBA Group was one of the first banks to adopt the commercial bank settlement model, our new settlement model designed to meet the needs of commercial banks while central banks retain their oversight responsibilities.
“We owe a great debt of gratitude to the bank’s management for backing PAPSS and thereby showing their sincere dedication in enabling Africa to take control of its own destiny.”
Ogbalu explained that this MoU will be put into effect gradually, in partnership with central banks in the countries where UBA operates. Customers of UBA in Africa will be informed through the usual channels of communication as soon as the service becomes available in their countries.
United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group-wide and serving over 35 million customers globally. Operating in 20 African countries and the United Kingdom, United States of America, France and United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting-edge technology.
