African Export-Import Bank (Afreximbank) yesterday announced the commercial launch of the Afreximbank Trade Payment Services (AfPAY) – an intervention designed to facilitate the settlement of international trade on open account terms on behalf of identified African financial institutions and their clients.

According to a statement, Afreximbank developed the product specifically to address the banking challenges confronting African economies due to the withdrawal of many international banks from the continent.

“Over the years, financial institutions on the continent have suffered from the reduction in their access to international correspondent banking services to facilitate their international trade.

“This curtailment of trade lines effectively shut the entrance of our Financial Institutions to the rest of the world. Trade is the number one driver of growth, and banks’ inability to participate in trade transactions will lead to reduced growth in our economies and increased poverty.

“AfPAY, which has been in a pilot phase for over a year now, currently facilitates over half a billion dollars in monthly payments across our member states. Notably, Zimbabwe has participated actively in the pilot, with twenty of its financial institutions using the solution,” the statement added.

Comenting on the launch, the Executive Vice President, Finance & Administration, Afreximbank, Mr. Denys Denya said: “African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions.

“We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”