Ruto Pitches Kenya for Pan-African Payment HQ
President William Ruto has extended an offer to establish the headquarters of the Pan-African Payment Settlement System (PAPPS) in Nairobi.
PAPPS is an infrastructure for cross-border financial markets that facilitates payment transactions across Africa. It is backed by African heads of state. Its purpose is to encourage transactions in domestic currencies, thereby decreasing reliance on the dollar and foreign exchange expenses.
Presidents from Africa have suggested that the system be implemented by February 2024.
President William Ruto announced on Tuesday at the African Continental Free Trade Area (ACFTA) Conference at Strathmore University that Kenya had agreed to serve as the host country for the headquarters. This development is particularly significant given Kenya’s reputation as an advocate for continental integration.
”We have been asked to host the headquarters of the Pan African Payment System in Kenya and because we are leaders in the technology space and because we are also promoters of African African Continent Free Trade Area,” Ruto stated.
President William Ruto expressed concern over the Ksh5 billion lost on currency conversions in Africa’s trade.
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The system that was introduced in January 2022 will facilitate cross-border trade by integrating the existing systems rather than replacing them.
Even though the African Union (AU) and the African Export-Import Bank (Afreximbank) initiated the integrated system, the majority of African nations have yet to implement it.
PAPSS facilitates the payment process by permitting the originator to provide instructions to their domestic bank in the currency of their choice.
After transmitting the instruction, PAPSS verifies the payment and transmits the confirmation to the bank account of the recipient.
The recipient is credited in their local currency upon approval.
When implemented across the entire continent, this system will significantly improve the trading framework in Africa, benefiting governments, banks, payment providers, corporations, and other enterprises. It will facilitate smooth transactions and optimize financial interactions.
Ruto Pitches Kenya for Pan-African Payment HQ
