The Future of Trade Report has revealed that about 50% of businesses in Africa are unaware of the Pan African Payment and Settlement System (PAPSS).
Though the report said PAPSS holds immense potential to transform intra-African trade by streamlining payments, reducing costs, and boosting efficiency, achieving widespread adoption across the continent requires overcoming several challenges.
“A significant hurdle lies in the diverse regulatory landscapes, financial infrastructures, and oversight systems across African nations. Central banks need to find ways to reconcile these differences to ensure PAPSS functions smoothly”, the report pointed out.
The report also pointed out that establishing a system for settling transactions and determining exchange rates for currencies with fluctuating values presents another challenge. This, it added will be crucial for smooth cross-border transactions.
The report called for comprehensive campaigns to educate businesses about PAPSS and its advantages could significantly accelerate adoption.
“Africa’s business leaders aware of PAPSS are strongly positive about its ability to boost intra-African trade,” the report stated.
Furthermore, a resounding 98% of business leaders acknowledge PAPSS’ potential to positively impact intra-African trade.
The survey also revealed that 98% of business leaders across Africa believe their central banks should expedite participation in the PAPSS network. This strong support highlights the business community’s confidence in PAPSS and their desire to see it implemented widely.
In conclusion, PAPSS offered a promising solution for simplifying and enhancing intra-African trade, stating, that by addressing the challenges of regulatory differences, volatile exchange rates, and low business awareness, PAPSS can unlock the full potential of this innovative payment system.
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