AfCFTA: CIBN, PAPSS Seal Pact on Trade Payment Reconciliation in Africa

As part of strategies to resolve payment-related barriers in the actualisation of the African Continental Free Trade Area (AfCFTA), the Chartered Institute of Bankers of Nigeria (CIBN) has signed a Memorandum of Understanding (MoU) with Pan- African and Payment Settlement System (PAPSS).

The MoU was signed between both organisations at the recently concluded CIBN’s  15th annual Banking and Finance Conference which held in Abuja with the theme, ‘’Repositioning the Financial Services Industry for an Evolving Glocal Context.”

The Conference featured five business and four plenary sessions with A-list faculty.

A communiqué released by CIBN at the end of the two-day conference,  noted that focus on improving trade by resolving payments-related barriers is a fundamental requirement for the success of AfCFTA which  has been highlighted by the PAPSS.

PAPSS provides a model that would support international payments in local currency, thus resolving specific payment-related challenges.

According to the communiqué, there are lots of oppourtunities for Africa but that the wealth is not tapped because of low level of trade interaction on the continent.

The communique noted that, with technological advancement, telemedicine has presented a viable solution for the provision of high-quality and low-cost health services.

It also said the Nigerian business model should be reshaped to address the unfriendly macroeconomic issues, adding that the growth of on-lending facilities for companies that have proper ESG goals and workable plans presents oppourtunities for businesses.

It further that there is a need to leverage collaboration among various international financial institutions to boost growth and development of the creative industry.

‘‘Infrastructure development needs to be facilitated to ensure the success of both the AfCFTA and PAPSS. The new digital infrastructure should be explored to boost financing in the creative sector is minimal and not yet understood. The players in this industry need to identify the technocrats who understand the way the technology works and understand how comparative economies finance the creative sector.

“We should consider the depth of equity financing with emphasis on creating special needs banks, investment banks, and/or large asset funds, which are ways of financing the creative sector in other jurisdictions,” the communique read.