African countries have been asked to build an integrated and organized financial mechanism, and allow an independent monetary system, to ensure the smooth and effective implementation of the Pan African Payment and Settlement System (PAPSS).
This was captured in a communiqué issued at the end of the 5th Ghana International Trade and Finance Conference.
The Pan African Payment and Settlement System is expected to connect the entire continent and handle instant payments in multiple African currencies and provide a settlement mechanism that creates trust within the ecosystem.
This brings two critical changes to Africa’s trade finance; minimising the use of hard currency in trade payments, and domesticating payments and settlements within Africa.
The 5th annual trade and finance conference organized by the Ghana International Trade and Finance Conference had experts and stakeholders from financial and monetary institutions in Ghana and on the continent in attendance.
They came together to discuss how to push trade and trade finance in the African Continental Free Trade Area (AfCFTA).
At the end of the conference, implementers of the Pan African Payment and Settlement System were asked to as a matter of urgency, show a clear roadmap for Trust, Sovereignty, Commitment, Control and Ownership of Data, Capacity and Capability and most importantly, explain mechanisms that have been put in place to avoid exploitation.
African economies were also encouraged to build an integrated and organized financial mechanism and allow an independent monetary system, to ensure the smooth and effective implementation of the payment system.
Furthermore, it was recommended that African contracting parties should respect the protocols under the AfCFTA to reduce the incidence of smuggling, unfair trade practices such as dumping, and the transhipment of third-party products into the African liberalized market.