Mike Ogbalu, CEO of PAPSS
The Chief Executive Officer (CEO) of the Pan-African Payment and Settlement System (PAPSS), Mike Ogbalu, has reiterated the importance of ensuring the successful implementation and operationalisation of the groundbreaking initiative throughout the African continent.
He made the call during PAPSS Roadshow in Ghana to formally introduce the commercial bank settlement model of PAPSS at the Kempinski Hotel in Accra. It was convened by the PAPSS and the African Continental Free Trade Area (AfCFTA) Secretariat at the margins of the Afreximbank Annual Meetings.
The Roadshow coincides with PAPSS’s imminent formal introduction of the commercial bank settlement model (SSA-3). SSA-3 is a new product that will provide commercial banks a lot more autonomy and benefits. Participants included commercial banks, fintech organisations, SMEs, large corporations, brokers, traders, individuals and the media.
The CEO of PAPSS bemoaned that Africa, having been galvanised, lack a single payment system, emphasising that the implementation of PAPSS would play a pivotal role in fostering economic integration and reducing barriers to trade and investment within Africa.
Potential
He highlighted that the operationalisation and success of this ambitious initiative would transform the economic landscape of the continent, facilitating swift, secure, and cost-effective transactions that will empower businesses and individuals alike.
Mr Ogbalu said the PAPSS holds immense potential to revolutionize how Africa conducts its financial affairs, adding that by streamlining payment processes and promoting financial inclusion, Africa can unlock new opportunities and drive economic growth across the continent.
“When you talk about infrastructure and logistics to support trade, tourism, investments and so on, one key element is payment. Trade doesn’t happen without payment. Tourism, when people move they have to be able to spend. Investment is also the movement of funds. So, clearly, if we do not have payments sorted then the integration we would like to have may not happen,” he stated.
Recognizing the challenges ahead, he underlined the need for collaborative efforts between African governments, regulatory bodies, and financial institutions to ensure a seamless implementation process. He stressed the significance of addressing technological, infrastructural, and regulatory hurdles that may arise during the integration of the PAPSS system into existing frameworks
The PAPSS CEO also emphasised the importance of extensive capacity-building programs to ensure the successful adoption and utilization of PAPSS by all stakeholders. He said by equipping individuals and institutions with the necessary skills and knowledge, PAPSS would be able to create a supportive ecosystem that fosters trust, efficiency, and innovation in financial transactions.
He indicated that the contributions from central banks and commercial banks have been instrumental in refining the framework of the Pan-African payment system, adding “until we are satisfied, let’s strive to establish this single payment system in Africa”.
Commitment
Ogbalu III also expressed his unwavering commitment to making PAPSS a resounding success, affirming that his team would leave no stone unturned in overcoming challenges and realising the shared vision of a prosperous and interconnected Africa.
Relatedly, speaking at PAPSS Ghana Roadshow, a representative of the AfCFTA Secretariat, commended the Government of Ghana on the recent successful PAPSS transaction recorded in the past few months. She expressed the hope to see more of these in many more African countries on the continent.
She also reiterated the operationalisation of PAPSS to facilitate the increasing volumes of intra-Africa trade payments. According to her, PAPSS will have a significant impact on the implementation of the AfCFTA Agreement and the Africa economy at large.
“PAPSS will boost trade and economic integration in Africa, by providing a more efficient and cost-effective way of making cross border payments and make it easier for businesses to trade across borders. Implementing PAPSS will increase trade and economic integration, reduce business costs and improve financial inclusion in Africa. With PAPSS, Africa traders and investors will benefit from a simplified process that reduces cost and complexities of foreign exchange across all transactions between African markets,” she stated.
About The Author
