Afreximbank, PAPSS partner with CARICOM to improve cross-border payments

The African Export-Import Bank (Afreximbank) and the Pan-African Payment and Settlement System (PAPSS) have joined forces with the Caribbean Community (CARICOM) and the Intra-Regional Payment Committee to revolutionize cross-border payments.

In a major step toward financial integration, Afreximbank announced that the parties had successfully conducted a Proof of Concept (PoC) for the CARICOM Payment and Settlement System (CAPSS), which is designed to mirror the PAPSS model. CAPSS will enable real-time transactions in local currencies across the CARICOM region, reducing dependency on foreign exchange intermediaries.

Afreximbank stated that the PoC, held from February 19-21, 2025, at the Central Bank of The Bahamas, involved key stakeholders, including representatives from the central banks of The Bahamas, Barbados, Suriname, and Trinidad & Tobago. The testing demonstrated CAPSS’s capability to process instant cross-border payments without intermediaries, a move set to enhance regional trade and financial efficiency.

Key Benefits of CAPSS
The introduction of CAPSS is expected to bring significant benefits, including real-time, local currency transactions, secure settlements backed by central banks, and reduced transaction costs. The system’s successful live testing between The Bahamas and Barbados highlights its potential to streamline financial operations within CARICOM and align seamlessly with PAPSS in Africa.

Nigeria to Host Afreximbank Annual Meetings
In another development, Nigeria and Afreximbank have formalized an agreement for Nigeria to host the 32nd Afreximbank Annual Meetings (AAM) in June. The event is expected to attract between 5,000 and 6,000 delegates from Africa, the Caribbean, the Americas, Europe, and Asia.

ALSO READ: STEPHEN BLEWETT: MTN GHANA POISED FOR CONTINUED GROWTH

The signing ceremony took place in Abuja, where Minister of Finance and Coordinating Minister of the Economy Wale Edun announced that President Bola Tinubu had approved the event’s hosting. Edun emphasized Nigeria’s commitment to working closely with Afreximbank, particularly in fostering economic growth and improving healthcare infrastructure.

One of Afreximbank’s flagship healthcare initiatives, the African Medical Centre of Excellence (AMCE) in Abuja, is expected to begin operations soon. The facility aims to reduce medical tourism by offering world-class healthcare services and addressing capacity gaps within Nigeria and the West African region.

Afreximbank’s Role in Africa’s Economic Growth
Over the past decade, Afreximbank has played a pivotal role in Africa’s economic development, disbursing over $140 billion to bridge financing gaps left by international banks. The bank has also spearheaded key initiatives such as the African Quality Assurance Centre, which ensures Nigerian exports meet global trade standards, and the Africa Trade Centre in Abuja, set to be inaugurated on April 10.