The Pan-African Payments and Settlement System (PAPSS) will work with Buna, the Arab Regional Payments Clearing and Settlement Organization, to establish a financial gateway between Africa and the Arab world.
The Arab Monetary Fund (AMF) and the African Export-Import Bank (Afreximbank) signed a Memorandum of Understanding (MoU) yesterday that lays the groundwork for cooperation and interoperability between Buna, the AMF’s cross-border and multi-currency payment system, and PAPSS, Afreximbank’s Pan-African Payment and Settlement System.
Buna and PAPSS will collaborate to establish efficient interoperability between their platforms and act as payment gateways connecting the Arab world to the African continent under the parameters of this MoU.
What this means
- Buna and PAPSS will enable its members to process fast, cost-effective, and secure multi-currency cross-border payments while also expanding their footprint in the global payment environment.
- Buna’s objective is to play a key role in promoting commerce and investment between the Arab world and Africa, and this strategic relationship fits right in.
- The MoU emphasizes the significant potential for payment systems such as Buna and PAPSS to drive and support the expansion of trade and investment flows between the Arab world and Africa.
What they are saying
His Excellency Dr. Abdulrahman A. Al Hamidy, Director-General and Chairman of the Board of the Arab Monetary Fund, spoke about the importance of Afreximbank and the AMF in leading strategic initiatives that can strengthen economic ties between the Arab region and the African continent.
He said: “Our collaboration represents an exemplary model of the leading role that the AMF and Afreximbank can play by working together to enable efficient access to payments, in line with the “G20 roadmap” to enhance cross-border payments. Buna’s success to establish interoperability with regional market infrastructure like PAPSS is another key milestone in Buna’s continuous efforts to expand its regional and global network and increase the value it brings to its participants. We also take this opportunity to express our gratitude to the Arab Bank of Economic Development in Africa (BADE) for its support in establishing this partnership between the AMF and Afreximbank.”
His Excellency, Professor Benedict Oramah, President of Afreximbank stated that the PAPSS- BUNA partnership will further foster the growth of trade between the two regions.
He said, “The Arab World and Africa have a long history of trade relations and the PAPSS- BUNA partnership will further facilitate the growth of trade between the two regions, The integration will enable the banks across Africa and the Arab World to have a seamless and one-stop centre for supporting their clients to transfer value to their counterparts from either region”.