Ecobank Partners with Pan-African Payment and Settlement System to Facilitate Cross-Border Payments

Banking

Thursday, 22 June 2023 18:37

Ecobank Partners with Pan-African Payment and Settlement System to Facilitate Cross-Border Payments

(Togo First) - The Lomé-based banking group Ecobank will rely on the network of the Pan-African Payment and Settlement System (PAPSS) to facilitate its cross-border financial exchanges. The two sides inked a memorandum of understanding (MoU) on June 19, 2023, in this framework.

The agreement was signed by the Secretary-General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene, and the Chief Executive Officer of Ecobank Group, Jeremy Awori. The signing occurred during the opening ceremony of the 30th Annual Assembly of Afreximbank (AAM) held in Accra, Ghana.

The MoU will enable Ecobank and its subsidiaries to settle cross-border transactions via the PAPSS, a financial market infrastructure created by Afreximbank and AfCFTA.

The PAPSS network provides a secure and efficient channel for processing payments, thus promoting intra-African trade. The partnership will, effectively, help the lender speed up its money transfers across all 33 countries it covers. It will also ensure their transparency and compliance, under the supervision of regulators, according to PAPSS. Ecobank and PAPSS’ deal aligns with the African Union's vision to boost intra-African trade and economic integration by improving financial connectivity.

"Partnerships such as the one we have signed on PAPSS are crucial for the implementation and success of the AfCFTA as well as for financial integration and economic development on our continent. We are committed to the success of PAPSS and are pleased to bring our expertise in payments and collections, across the 33 markets where we operate in Africa," said Jeremy Awori, CEO of Ecobank Group.

For his part, Mike Ogbalu III, CEO of PAPSS, welcomed his institution's cooperation with Ecobank, highlighting that it will transform the way Africans conduct their cross-border transactions.

The MoU should be implemented gradually, with the support of the Central Banks of the countries concerned. The service should be online by January 2024.

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