The President of the African Import-Export Bank, Prof Benedict Oramah, on Tuesday said that the bank was set to domesticate Intra-African payments through the commercial launch of the Pan-African Payment and Settlement System (PAPSS).
Oramah who spoke exclusively with ARISE NEWS, noted that Africa was losing as much as $5 billion yearly because such a payment system does not currently exist, making intra-African trade very difficult.
He noted that as at today, Africa has about 42 currencies and roughly the same number of fragmented payment systems, stressing that transacting businesses under such conditions means the movement from one currency to the other.
“This has been costing the continent an estimated $5 billion a year for intra-regional payments. That had meant that payments sometimes took up to 14 days if they (ever) arrive.
“ In an age where foreign currency has increasingly become scarce, it will also cause a diversion of trade because to be able to buy something from your neighbour, you have to go and change it to another currency from somewhere else to be able to get the currency to pay for it.
“And we say this is not necessary. We want to domesticate all intra-African payments. We do not yet have a single currency, but we can domesticate the payment by using a multilateral debt settlement system to reduce the foreign currency content of the trade and make it easier for people to buy goods across borders and retain trade that is diverted just because of currency issues.
“ It will reduce significantly the cost of making payment across Africa. Payment is what will drive intra-regional trade because it’s through payments that you do a transfer of value. So, it it’s not just the issue of currency use.
“It’s also to integrate the infrastructure of all the payment systems that makes it easier for the farmer in Zambia to pay for Nollywood movies and stream Nigerian movies paying in Zambian Kwacha,” he pointed out.
He stated that for instance it will make it easy for Ghana to contract an Egyptian contractor to build roads and bridges and pay in Ghanaian Cedi.
“We are going to see a reduction in Sovereign Debts of many countries because of foreign currency because we will now start paying for services and infrastructure projects which we spend about $60 billion on the continent in African currencies.
“We complain today that we have difficulties in airlines flying all over Africa, but why will they fly when money is stuck in some countries because these countries do not have foreign currencies to pay?
“ If as we hope will happen very shortly, it is possible now for those airlines to get paid in the national currencies of their origin. That will reduce significantly these problems and then make it possible for them to open more routes to other African countries,” he added.
He stated one of the key takeaways from the recent Afreximbank annual meetings and its 30th anniversary celebration in Accra, Ghana, was that the event experienced a record number of attendees of over 5,000 persons from 90 countries , but noted that more would have come if not for logistics difficulties.
Oramah stated that the anniversary event also enabled Afreximbank to launch the Afreximbank group, consisting of the Afreximbank fund for export development in Africa, multilateral fund based in Kigali, Rwanda, the Afreximbank insurance management entity which enables the bank provide insurance services and other ‘ring-fence’ initiatives like the Pan African Payment and Settlement System towards the implementation of the African Continental Free Trade Area (AfCFTA).
He added that the PAPSS will enable the payment of intra-Africa trade in African currencies, noting that the Afreximbank due diligence repository platform was also launched, including other units like the African medical centre of excellence, among others.
Oramah also said it was also the first gathering of global Africans, with the Caribbean countries ably represented and that they came along with a broad spectrum of businesses and government agencies from the Caribbean.
The president said it also allowed Afreximbank showcase its financial performance, including a 36 per cent growth in gross revenue to about $1.5 billion and 18 per cent growth in net income growth of about $450 million, thanks to the strong support of the shareholders.
The Nigerian-born Afreximbank president added that the shareholders funds further increased to just under $6 billion, explaining that when combined with the capital, got close to about $10 billion.
Emmanuel Addeh in Abuja
Follow us on:
The federal government has reinstated Professor Joseph Ikechebelu as acting Vice-Chancellor of UNIZIK, nullifying Professor…
Court of Appeal has overturned the Federal High Court ruling barring INEC from releasing voter…
Kenya has cancelled airport and energy deals with Adani following US bribery and fraud charges…
Brazil’s former president Bolsonaro and 36 others have been indicted for allegedly attempting a coup…
Republican David McCormick won Pennsylvania Senate seat as Democratic Sen. Bob Casey concedes after recount…
Trudeau's government has announced plans for temporary tax relief, cheques for Canadians amid rising costs…
View Comments
E-AUCTION👇👇👇O7O 4540 6674 }CAR FEATURES AND PRICES BELOW
GOLF , 2, 3,4 ,.300,000 to 400,000
Toyota Camry Big==#850, 000Daddy==N750,000.
Toyota Camry Tiny-Light==
N500,000
Toyota Avenza ==N1.3. To N3. million
Toyota Hilux==950,000 to N 2.5 million
Toyota Avensis==N650,000.
Toyota Camry Muscle==N 900,000. & Spider==N950,000.
Avalon==N670,000.
Rav4 SUV==800,000 to N1.million
Toyota Sienna==N650,000.
Camry 2.4 650,000
Toyota 4Runner==850,000 to N1.3million
Tundra==950,000 to N3.8. Million
picnic==N650,000.
Toyota Highlander==N950,000 to
N3. 5m
Corolla==N500,000.
Prado==N1.m To 1.7 million
Toyota LandCruisser==N900,000. to 2mill
Toyota Yaris==N650.000.
Toyota Matrix==N700,000
Toyota Haice Bus==N 950,000 to 1.2mill
MDX ==N1.5
TIPPER head 6m
M
ZDX==N1.7
DYNA TRUCK 900,000
Honda Pilot==N950,000
Crosstour 850,000 to 1,300,000
CR-V 500,000 to 900,000
EOD 650,000
Benz ML350 900,000
Accord 500,000
Rx300==N800,000. To N1.1 Million
Benz ===900,000 to 3million
Rx330==N950,000 To N1.8 Million
Tacoma ===950,000 to 3mill
Benz C-Class ===950,000 to 3m
GLK ==1.5m to 3mill
IS250==900,000 to 2milli
Rx350==N900,000 To N2.3 Million
TUNDRA ===950,000 to 2m
Gx470 ===1,300,000. to 3m
IS350 950,000 to 3mill
ES350 ==950,000 to 2mill
O7O 4540 6674 }
Rx470==N2.m AII070_4540_6674〽