U A memorandum of understanding was signed between the Pan African Payment and Settlement System (Papss) and the African Association of Stock Exchanges (Asea) on 14 April last in Victoria Falls, Zimbabwe.

Strengthening collaboration and cooperation in promoting cross-border capital market infrastructure payments in Africa is the objective of the agreement between Papss and Asea. This agreement promotes instant cross-border payments in local currency. It will allow investors to use pan-African financial levers such as the African Export-Import Bank (Afreximbank), which developed Papss in collaboration with the African Continental Free Trade Area (Zlecaf) secretariat

The two institutions explained in a statement that they have implemented this tool to provide solutions to payments that are “time-consuming” and at the same time “expensive due to an environment requiring the use of correspondent banks in outside the continent, and are carried out in foreign currencies (American dollar or Euro)”.