Latest news with #PAPSS
Entrepreneur
a day ago
- Business
- Entrepreneur
Dubai-Based Mercury Payment Services Collaborates With Africa-Based PAPSS to Launch Pan-African Payment Scheme, PAPSSCARD
You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media. Dubai-based digital payments platform Mercury Payment Services (Mercury) has collaborated with the Pan African Payments Settlement System (PAPSS) -an initiative of the African Export-Import Bank (Afreximbank)- to launch PAPSSCARD, a continental card scheme and switch that aims to connect national payment switches across the continent and provide a Pan-African interoperable card payments brand with regional and global acceptance of domestic payment schemes in Africa. The announcement was made at the 32nd Afreximbank's Annual Meetings in Abuja, Nigeria on June 27, 2025. As such, this joint initiative seeks to advance regional financial inclusion and payment systems sovereignty across Africa. The ceremony was led by H.E. Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, alongside Mike Ogbalu III, CEO of PAPSS, and Mercury's Executive Chairman Muzaffar Khokhar and CEO Muzaffer Hamid. Other guests included current and former Heads of State from African and Caribbean countries, Central Bank Governors, Afreximbank Executives and members of the AfCFTA Secretariat. "Mercury is actively working with Central Banks, and National payment utilities across Middle East and Africa to design and develop payment infrastructure technology and services," Muzaffar Khokhar, Executive Chairman of Mercury, said. "Our mission is to make PAPSSCARD the most loved African payments brand in the near future." On his part, Mike Ogbalu III, CEO of PAPSS, added: "The official launch of the PAPSSCARD is a defining moment in Africa's journey toward true financial sovereignty and integration. Through this partnership, we are enabling seamless, secure, and affordable payments that transcend borders, empowering people and businesses across our continent. The PAPSSCARD is not just a payments solution; it is another engine of the PAPSS ecosystem and squarely falls under our mandate of facilitating cross-border payments within Africa. It serves as the foundation for a new era of intra-African trade and prosperity, demonstrating what we can achieve with collective vision and collaboration." "The launch of PAPSSCARD marks a significant milestone in our journey towards enhancing Africa's payment landscape," added Muzaffer Hamid, CEO of Mercury. "With this initiative, we aim to build an independent and seamless payment network that supports and strengthens every African nations' payments ecosystem. Our commitment is to make the PAPSSCARD a symbol of trust and efficiency across the continent." As a Middle East Africa-focused, multifaceted payment technology infrastructure and services provider to Central Banks and National payment utilities, Mercury has developed a "Scheme In a Box" platform that simplifies the deployment of payments schemes.
Al-Ahram Weekly
2 days ago
- Business
- Al-Ahram Weekly
Africa launches 1st Pan-African card scheme, PAPSSCARD, to boost financial sovereignty - Economy
Africa has marked a significant step towards financial independence following the launch of PAPSSCARD, the continent's first Pan-African card scheme. Launched Friday at the 32nd Afreximbank Annual Meetings in Abuja, Nigeria, the new card represents a major leap in Africa's efforts to achieve financial sovereignty by building resilient and independent payment systems, easing people travel and boosting trade integration. PAPSSCARD, a joint-venture between the African Export-Import Bank (Afreximbank), the Pan-African Payment and Settlement System (PAPSS) and Mercury Payment Services (MPS), enables fast, secure, and affordable retail payments across African borders. While most African card payments are currently routed through global systems, leading to increased fees and loss of data control, PAPSSCARD changes the game by processing transactions entirely within the continent, keeping value, data, and economic benefit in Africa. Speaking during the launching event, Afreximbank President and Chairman of the Board of Directors Professor Benedict Oramah highlighted the significance of PAPSSCARD in reclaiming Africa's financial autonomy. 'For too long, Africa's reliance on external payment systems has impeded trade, increased costs, and compromised control over our financial data. PAPSSCARD changes that,' Oramah said. 'It empowers us to move money swiftly, securely, and affordably across our borders. It is a transformative step towards strengthening intra-African trade and preserving value within the continent.' Additionally, CEO of PAPSS Mike Ogbalu III described PAPSSCARD as a major advancement in the continent's financial architecture, noting that it is 'more than just a payment tool, it is a powerful symbol of progress and a bold step towards financial independence.' He added that the card reflects Africa's ability to create practical, home-grown solutions that align with the way the continent trades, lives, and grows. Furthermore, Executive Chairman of Mercury Muzaffar Khokhar described the step as a milestone in Africa's move toward financial sovereignty. 'We are proud to support a system built by Africa, and for Africa. This is about sovereignty, innovation, and building trust in African systems to shape the continent's financial future,' Khokhar said during his speech. 'The PAPSSCARD will become Africa's most trusted payments brand, strengthening the backbone of the continent's financial future.' Moreover, Acting CEO of PAPSSCARD John Bosco Sebabi said that the new payment offering will unlock benefits for a wide range of stakeholders, from corporates and banks to merchants and individuals. He noted that the PAPSSCARD would reduce costs for public institutions, support innovation across the financial sector, and expand access to secure, modern payment tools for people and businesses across the continent. During the event, commemorative cards were unveiled to mark the launch of the PAPSSCARD. This initiative was made possible by strategic partnerships with issuing banks; Bank of Kigali and I&M Bank Rwanda; Rswitch, Rwanda's national e-payment switch - SmartCash; and Unified Payments, ensuring its seamless acceptance throughout Nigeria. African central banks and payment systems are set to spearhead the continent-wide adoption and rollout of the new PAPSSCARD. This initiative will significantly advance Afreximbank's strategy to promote financial inclusion and boost intra-African trade under the African Continental Free Trade Area (AfCFTA), fostering a more integrated and self-sustaining African economy. Follow us on: Facebook Instagram Whatsapp Short link:
Arabian Post
3 days ago
- Business
- Arabian Post
Afreximbank Selects George Elombi to Steer Next Decade of Growth
Afreximbank has confirmed the appointment of Dr George Elombi, its Executive Vice‑President for Governance, Legal and Corporate Services, as the institution's fourth President and Chairman of the Board, effective September 2025. The decision was ratified during the 32nd Afreximbank Group Annual Meetings held in Abuja, Nigeria, from 25 to 28 June, culminating in formal shareholder approval on 28 June. A Cameroonian national with nearly three decades of service at Afreximbank, Dr Elombi entered the Bank in 1996 as a legal officer and ascended through roles including Chief Legal Officer, Deputy Director and Executive Secretary, before assuming his current vice-presidential position in 2015. In his acceptance statement, he pledged to 'ensure Afreximbank remains a catalyst for industrialisation and dignity for the continent,' committing to delivering on the Bank's long‑term vision to expand its balance sheet to USD 250 billion within ten years, an objective originally set by his predecessor, Professor Benedict Oramah. Under Professor Oramah, Africa's trade finance flagship expanded rapidly, disbursing around USD 20 billion in trade finance in 2024 and supporting the implementation of the AfCFTA via PAPSS infrastructure development. Dr Elombi inherits this momentum, but also an environment of complexity, as the institution recently endured a downgrade by Fitch Ratings to BBB‑ with a negative outlook, a move driven by rising non‑performing loan ratios—7.1% versus reported IFRS‑based 2.44%—and concerns over transparency in risk reporting. ADVERTISEMENT During the meetings, shareholders highlighted three core leadership priorities: upholding institutional credibility as rating pressures persist; doubling annual trade finance volumes; and steering strategic continuity through the PAPSS and AfCFTA integration agenda. In this context, Dr Elombi's appointment signals a commitment to both continuity and structural resilience. His leadership over legal, corporate governance and crisis management functions—particularly during Afreximbank's COVID‑19 vaccine financing, which mobilised over USD 2 billion for African and Caribbean nations—offers a foundation to tackle the ongoing challenges. Dr Elombi also has responsibility for equity mobilisation, driving USD 3.6 billion in ordinary equity by April 2025. His credentials include a Master of Laws and a PhD in commercial arbitration from the London School of Economics, along with legal training at the University of Yaoundé and early-career teaching at the University of Hull. The rigorous global selection process, launched in January 2025, involved international advertising and vetting by a leading executive search firm, culminating in the Bank's Board presenting Dr Elombi's candidature to shareholders. Under the charter, the President's term spans five years and may be renewed once. Observers say the timing of this transition is significant. Afreximbank's total assets reached USD 40.1 billion at the close of 2024, with shareholder equity of USD 7.2 billion and solid ratings from Moody's, Fitch, JCR, GCR and CCXI. The Bank's strategic role in fostering African industrialisation and supporting intra‑continental trade is critical amid shifting global trade patterns, and the new leader must balance ambitious growth with prudent risk oversight. Reflecting on the path ahead, Dr Elombi acknowledged the magnitude of the task. 'I have worked alongside remarkable colleagues…to shape this institution's vision, its mandate as well as its growth,' he said. 'As we look to the future, I see Afreximbank as a force for industrialising Africa and for regaining the dignity of Africans wherever they are. I will work to preserve this important asset,' he added. With a strong track record in governance, equity mobilisation and crisis response, Dr Elombi assumes control at a pivotal moment. The next administration will need to restore confidence in risk management and ensure sustained support for intra-African trade, while pursuing the Bank's push towards its USD 250 billion ambition. Against a backdrop of tightening global financial conditions and increased scrutiny on development finance institutions, his leadership may be instrumental in defining Afreximbank's role in the next chapter of Africa's economic integration and industrial transformation.
Malay Mail
20-06-2025
- Business
- Malay Mail
Africa pioneers low-cost, non-dollar payment systems, defying Trump's de-dollarisation threats
PAPSS payment system allows trade settlement in local currencies Experts says move aims of lowering trade costs South Africa using G20 presidency to advance local payments US President Trump warns against de-dollarisation efforts NAIROBI, June 20 — Africa's push for local currency payments systems — once little more than an aspiration — is finally making concrete gains, bringing the promise of less costly trade to a continent long hobbled by resource-sapping dollar transactions. But efforts to move away from the dollar face strong opposition and the threat of retaliation from US President Donald Trump, who is determined to preserve it as the dominant currency for global trade. The move by Africa to create payments systems that do not rely on the greenback mirrors a push by China to develop financial systems independent of Western institutions. Countries like Russia, which face economic sanctions, are also keen for an alternative to the dollar. But while that movement has gained a sense of urgency due to shifting trade patterns and geopolitical realignments following President Trump's return to the White House, African advocates for payment alternatives are making their case based on costs. 'Our goal, contrary to what people might think, is not de-dollarisation,' said Mike Ogbalu, chief executive of the Pan-African Payments and Settlements System, which allows parties to transact directly in local currencies, bypassing the dollar. 'If you look at African economies, you'll find that they struggle with availability for third-party global currencies to settle transactions,' he said. Africa's commercial banks typically rely on overseas counterparts, through so-called correspondent banking relationships, to facilitate settlements of international payments. That includes payments between African neighbours. That adds significantly to transaction costs that, along with other factors like poor transport infrastructure, have made trade in Africa 50 per cent more expensive than the global average, according to the UN Trade and Development agency. It is also among the reasons so much of Africa's trade — 84 per cent, according to a report by Mauritius-based MCB Group — is with external partners rather than between African nations. 'The existing financial network that is largely dollar-based has essentially become less effective for Africa, and costlier,' said Daniel McDowell, a professor at Syracuse University in New York specialising in international finance. A man counts Nigerian naira notes in a market place as people struggle with the economic hardship and cashflow problems ahead of Nigeria's Presidential elections, in Yola, Nigeria, February 22, 2023. — Reuters pic Homegrown systems According to data compiled by PAPSS, under the existing system of correspondent banks, a US$200 million (RM851 million) trade between two parties in different African countries is estimated to cost 10 per cent to 30 per cent of the value of the deal. The shift to homegrown payments systems could cut the cost of that transaction to just 1 per cent. Systems like PAPSS allow a business in one country, Zambia for example, to pay for goods from another like Kenya, with both buyer and seller receiving payment in their respective currencies rather than converting them into dollars to complete the transaction. Using currencies like the Nigerian naira, Ghanaian cedi or South Africa's rand for intra-Africa trade payments could save the continent US$5 billion a year in hard currency, Ogbalu told Reuters. Launched in January 2022 with just 10 participating commercial banks, PAPSS is today operational in 15 countries including Zambia, Malawi, Kenya and Tunisia, and now has 150 commercial banks in its network. 'We have also seen very significant growth in our transactions,' Ogbalu said, without providing usage data. The International Finance Corporation, the World Bank's private sector lending arm, has, meanwhile, started issuing loans to African businesses in local currencies. It views the switch as imperative for their growth, relieving them from the currency risks of borrowing in dollars, said Ethiopis Tafara, IFC's vice-president for Africa. 'If they are not generating hard currency, a hard-currency loan imposes a burden that makes it difficult for them to succeed,' he said. Africa's push for local currency payments systems is finally making concrete gains, bringing the promise of less costly trade to a continent long hobbled by resource-sapping dollar transactions. — Picture By Choo Choy May Geopolitics and the Trump factor Africa's campaign to boost regional payments systems has found a platform at the Group of 20 major economies, with South Africa leading the charge as holder of the G20's rotating presidency. It held at least one session on boosting regional payments systems when South Africa hosted a meeting of G20 finance ministers and central bank governors. And South Africa wants it to follow up the talk with concrete actions. The next meeting of G20 finance officials is scheduled for mid-July. 'Some of the most expensive corridors for cross-border payments are actually found on the African continent,' Lesetja Kganyago, South Africa's central bank governor, told Reuters during a G20 meeting in Cape Town in February. 'For us to function as a continent, it's important that we start trading and settling in our own currencies.' Talk of moving away from the dollar — either for trade or as a reserve currency — has drawn aggressive reactions from President Trump, however. After Brics — a grouping of nations including Russia, China, India and Brazil along with Africans like South Africa, Egypt and Ethiopia — weighed reducing dollar dependence and creating a common currency, Trump responded with threats of 100 per cent tariffs. 'There is no chance that Brics will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!,' he wrote on Truth Social in January. In the months since, Trump has demonstrated his willingness to use tariffs to pressure and punish allies and foes alike, a strategy that has upended global trade and geopolitics. No matter its intentions in moving to more local currency transactions, Syracuse University's McDowell said Africa will struggle to distance itself from more politically motivated de-dollarisation efforts, like those led by China and Russia. 'The perception is likely to be that this is about geopolitics,' he said. — Reuters
Zawya
09-05-2025
- Business
- Zawya
Nigeria Unlocks Intra-African Trade with New Pan-African Payment & Settlement System (PAPSS) Policy Boost
The Pan-African Payment&Settlement System (PAPSS) warmly welcomes the new circular from the Central Bank of Nigeria (CBN), announcing a significant streamlining of documentation requirements for PAPSS transactions in Nigeria. This progressive policy, announced on 28 April 2025, sets the stage for faster, more cost-effective, and more inclusive participation by Nigerians and Nigerian businesses, especially Small and Medium Enterprises (SMEs), involved in intra-African commerce under the African Continental Free Trade Area (AfCFTA). With the new announcement, individuals and businesses in Nigeria will now be able to make PAPSS transactions efficiently; with less delays occasioned by paperwork. Only basic KYC (Know Your Customer) and AML (Anti-Money Laundering) documents are required for clearance of payments under US$2,000 (for individuals) and US$5,000 (for corporates) per month. This makes it easier for Nigerian SMEs to trade across Africa under the AfCFTA, with fewer heavy documentation barriers than ever before. The announcement also empowers commercial banks to source foreign exchange for PAPSS through Nigeria's Foreign Exchange market. As PAPSS continues to expand across Africa — with 16 countries, 14 payment switches, and more than 150 commercial banks now connected, including 22 banks in Nigeria — the streamlined requirements will eliminate barriers and encourage broader use of our secure, instant, local currency-based platform. Mike Ogbalu III, CEO of PAPSS, commented: 'Today marks a transformational milestone for Nigerian commerce and for the larger vision of African economic integration. We are grateful to the Central Bank of Nigeria for its unwavering support and vision in propelling Nigeria towards seamless intra-African payments under the AfCFTA. 'This bold policy move by the CBN will empower banks, businesses, and entrepreneurs to connect, trade, and pay more easily than ever before. The directive removes excess paperwork from a large number of transfers, empowering Nigerian businesses to participate more freely in the African Continental Free Trade Area by utilising our secure, local currency-based platform. 'We also expect Nigerian banks to begin integrating PAPSS into their digital platforms such as mobile apps and online banking in the near future, promoting even wider adoption. 'PAPSS is at the forefront of the African advancement towards a truly borderless African economy and achieving the ultimate goal of economic self-determination. We encourage all stakeholders across the continent to follow in Nigeria's footsteps, embrace PAPSS, and become part of the transformation that will define the way Africa does payments and accelerate the realisation of the African Continental Free Trade Area goals.' Distributed by APO Group on behalf of Afreximbank. Contact person: Papa Thiongane communications@ Follow us on: LinkedIn: Twitter: Facebook: YouTube: About PAPSS: The Pan-African Payment and Settlement System – PAPSS is a centralised Financial Market Infrastructure that enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions. PAPSS works in collaboration with Africa's central banks to provide a payment and settlement service to which commercial banks and licensed payment service providers across the region can connect as 'Participants'. Afreximbank and the African Union ('AU') first announced PAPSS at the Twelfth Extraordinary Summit of the African Union held on July 7, 2019, in Niamey, Niger Republic, therefore adopting PAPSS as a key instrument for the implementation of the African Continental Free Trade Agreement (AfCFTA). Further, in its thirteenth (13th) extraordinary session, held on December 5, 2020, the assembly of the African Union directed Afreximbank and the AfCFTA secretariat to finalise, among others, work on the Pan-African Payments and Settlements System (PAPSS). The 35th Ordinary Session of the Assembly of the AU further directed the AfCFTA and Afreximbank to deploy the system to cover the entire continent. PAPSS was officially launched in Accra, Ghana, on January 13, 2022, thus making it available for use by the public. For more information, visit:
