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Standard Bank of South Africa Limited and The Pan African Payment and Settlement System (PAPSS) have signed a Memorandum of Understanding (MoU) to facilitate settlement of cross-border transactions of the Group, including the transactions of all their subsidiaries through PAPSS. The MoU was signed on Monday, 19 June 2023 during the opening ceremony of the 30th Afreximbank Annual Meeting (AAM) held in Accra, Ghana honored by the presence of H.E. Nana Akufo Addo, President of the Republic of Ghana and other African Heads of States, Professor Benedict Oramah, President of Afreximbank, H.E. Wamkele Mene, Secretary General of the AfCFTA and many other dignitaries.
Established by the African Export-Import Bank (Afreximbank) and the Africa Continental Free Trade Area (AfCFTA) Secretariat, PAPSS is financial market infrastructure that provides a secure and efficient channel for processing cross-border payments, ensuring speed, affordable cost, and reliability in order to facilitate intra-African trade. During the ceremony, PAPSS also introduced the Commercial Bank Settlement Model, a new settlement model which offers the commercial banks a window to open and fund their own settlement accounts at Afreximbank and manage their own liquidity according to their banking needs.
By leveraging the capabilities of PAPSS, Standard Bank affiliates in more than 20 countries, will streamline and expedite the transfer of funds while ensuring transparency and compliance under the Regulators supervision. Additionally, the partnership aligns with the African Union's vision of promoting intra-African trade and economic integration through enhanced financial connectivity. By leveraging their combined expertise, Standard Bank of South Africa and PAPSS are poised to contribute to the growth and development of the African economy.
Commenting on the signing, the Chief Executive, Stanbic Bank Ghana Limited, Mr. Kwamina Asomaning said: “Standard Bank welcomes the opportunity to partner with PAPSS, on this initiative to drive intra-Africa trade and transactional flows between African countries. As an African bank with presence across 20 countries on the continent, we see the growth of Africa as a major priority and this partnership speaks to the vision of reducing barriers to trade across Africa, encouraging the use of African currencies as primary payment methods and reducing transactional costs of doing business in Africa. After all, Africa is our home, and we will drive her growth.”
The Chief Executive Officer, PAPSS, Mr Mike Ogbalu III, said, “We are delighted to have Standard Bank Group, one of the largest and most respected banks in Africa, partner with us towards our shared vision of making Africa more prosperous and successful. In fact, in Nigeria, the bank was one of the first financial institutions to use PAPSS, therefore we hope that the rest of the group's subsidiaries will soon follow suit.
As the digital revolution continues to shape the financial landscape, Standard Bank Group remains at the forefront of innovation. Through this collaboration, Standard Bank Group aims to leverage PAPSS's advanced payment infrastructure to drive financial inclusion, promote seamless cross-border transactions, and support Africa's economic growth.”
This MOU will be put into effect gradually in partnership with the Central Banks in the countries where Standard Bank operates. Customers of Standard Bank in Africa will be informed through the usual channels of communications as soon as the service becomes available in their countries. PAPSS and Standard Bank will be working towards making this service available as from January 2024.
