Business Maverick

Business Maverick

New Africa Payment System to Save $5 Billion in Fees, Lift Trade

(Image: Adobe Stock)
By Bloomberg
17 Jan 2022
0

Africa’s new cross-border payment system is expected to save the continent billions of dollars in annual transaction costs and bolster shipments in the world’s largest free-trade zone, according to Mahamudu Bawumia, the vice president of Ghana. 

The so-called Pan-African Payment and Settlement System will facilitate intra-regional trade and payments by enabling the real-time transfer of funds from one African country to another, he said. Traders have, until now, had to settle payments via U.S. and European banks and the new system is expected to save the continent about $5 billion in offshore clearance and transaction costs, according to its developer, the African Export-Import Bank.“This is an African solution to an African problem and it’s the most practical and most important achievement in payment-system integration on the African continent since independence from colonial rule,” Bawumia said. It’s the closest the continent has come to the benefits of a common currency, he said.It’s also one of the key building blocks for the African Continental Free Trade Area, he said. The continent-wide trade zone that’s set to be fully operational in 2030 could be the world’s biggest free trade zone by area, with a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion.

The system was launched in the Ghanaian capital, Accra, on Thursday after having been piloted in the West African Monetary Zone, which includes Nigeria, the continent’s biggest economy.

Gallery

Comments - Please in order to comment.

Top Reads This Hour

Gloves come off as SA’s Takealot and Zando tackle global juggernauts Temu, Shein and Amazon
Maverick News

Gloves come off as SA’s Takealot and Zando tackle global juggernauts Temu, Shein and Amazon
Patriotic Alliance shocks ANC, DA in Western Cape wards, local party bags historic win
Maverick News

Patriotic Alliance shocks ANC, DA in Western Cape wards, local party bags historic win
Running out of money every month? Here’s how to create a practical spending plan
Maverick Life

Running out of money every month? Here’s how to create a practical spending plan
Reserve Bank seizes R60m assets from Berdine Odendaal, leaving her in the cold
Maverick News

Reserve Bank seizes R60m assets from Berdine Odendaal, leaving her in the cold
Natural-born class acts — why small-town schools punch above their weight
Maverick Life

Natural-born class acts — why small-town schools punch above their weight

TOP READS IN SECTION

Reserve Bank seizes R60m assets from Berdine Odendaal, leaving her in the cold
Maverick News

Reserve Bank seizes R60m assets from Berdine Odendaal, leaving her in the cold
Cartoon Thursday with Rico
Business Maverick

Cartoon Thursday with Rico
Gloves come off as SA’s Takealot and Zando tackle global juggernauts Temu, Shein and Amazon
Maverick News

Gloves come off as SA’s Takealot and Zando tackle global juggernauts Temu, Shein and Amazon
BHP approaches rival miner Anglo American about takeover
Business Maverick

BHP approaches rival miner Anglo American about takeover
BHP is keen on Anglo’s global copper assets without the risky SA baggage 
Business Maverick

BHP is keen on Anglo’s global copper assets without the risky SA baggage 

Investigations

News & Analysis

Features

Newsletters

Community

DM168

Daily Maverick © All rights reserved

Please peer review 3 community comments before your comment can be posted

X

This article is free to read.

Sign up for free or sign in to continue reading.

Unlike our competitors, we don’t force you to pay to read the news but we do need your email address to make your experience better.


FAQ | Contact Us

Nearly there! Create a password to finish signing up with us:

Please enter your password or get a sign in link if you’ve forgotten

Open Sesame! Thanks for signing up.

Daily Maverick needs your support

We're not asking you to pay for every article you read. We're asking you to support us so that we can keep doing what South Africa needs us to do. Without the support of our readers, we won't be able to keep going.

If you really can't afford the price of an extra cup of coffee a week, then know this: we will never force you to pay. We'e got your back and one day, you'll have ours.

SUPPORT DAILY MAVERICK
Become a Maverick Insider

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options
Daily Maverick Elections Toolbox

Feeling powerless in politics?

Equip yourself with the tools you need for an informed decision this election. Get the Elections Toolbox with shareable party manifesto guide.