Africa transacts nearly $20bn in global payment platforms annually
Secretary General of African Continental Free Trade Area (AfCFTA), Wamkele Mene, has said that the introduction of the Pan-African Payment and Settlement System (PAPSS) will enable Africans to trade in local currency without facing challenges of convertibility.
Mene estimated that the cost of currency convertibility could be as high as $5bn annually. He added that in 2019, Africa transacted almost $20bn on global payment platforms, which is not in the best interest of the African economy.
At the Africa Prosperity Dialogues at the Peduase Presidential Lodge, Mene highlighted the success of the AfCFTA, saying it had established a new regime for trade in Africa, with all necessary legal documents in place.
However, he acknowledged that cost of trade remains a major challenge, particularly for small and medium enterprises and young entrepreneurs.
Mene added that the AfCFTA Secretariat is working on a protocol for digital trade which will establish a regulatory framework for digitizing Africa’s economy, including market access and issues related to data transfer.
The first Africa Prosperity Dialogues, themed “AfCFTA: From Ambition to Action, Delivering Prosperity through Continental Trade,” brought together Africa’s political and business leaders to discuss intra-Africa trade.
