Leading Pan-African Payment and Settlement System (PAPSS) has expanded because more banks are willing to join. The significant effort is to reduce expenses with trade in the region.
By incorporating 11, more central banks that are African the African Export-Import bank will play significant role in future trading platform for Africa. The main goal of (PAPSS) is transaction in local currency that eliminate the necessity for using other third-party currencies.
More the 85% of payments currently pass through European or U.S banking infrastructure and the cost of transaction are more the $5 billion in fees. Africa’s new (PAPSS) system will reduce the costs and help African counties to grove there economy. Central banks of African countries are participants in PAPSS system and they regulate and serve as agents to commercial banks and other payment service providers.
African Union (AU), which has 55 member and eight regional Economic Communities (RECs) is one of the largest free trade area in the world.
The benefits of PAPSS system is a remarkably short time of transactions. Transaction time goes from 10 to maximum 120 seconds.