RBM joins pan-African payment system
The Reserve Bank of Malawi (RBM) has become the fourth African central bank this year to join the Pan-African Payment and Settlement System (Papss) championed by the African Export and Import Bank (Afreximbank).
Papss is a payment platform which seeks to revolutionise cross-border payments and boost intra-African trade and Malawi becomes the 12th African country to join the payment platform.
Papss secretariat announced on Tuesday that Malawian commercial banks will join the payment platform in the first quarter of 2024.
In an interview on Tuesday, Papss chief executive officer Mike Ogbalu III said joining the African Continental Free Trade Agreement (AfCFTA)-supported platform will facilitate and enhance trade on the African continent.
He said: “The adoption of Papss will stimulate trade diversification, economic resilience, and sustainable development for all participating countries.
“As Papss continues to expand its reach and impact, it reaffirms its commitment to promoting financial inclusion, reducing trade barriers, and enhancing cross-border trade across the globe.”
Speaking at the Intra-African Trade Fair 2023 in Egypt last month, Afreximbank president Benedict Oramah said Papss will eliminate the complexities and inefficiencies that often hinder intra-regional trade, thereby promoting monetary stability and economic development across the continent.
RBM is yet to issue a statement on its move to join the platform and how the country stands to benefit.
However, according to Papss website, the platform is a centralised financial market infrastructure that enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration.
