Pan-African multilateral financial institution devoted to financing and promoting intra and extra African trade Afrexibank, has launched its payment services ‘AFPAY’ to enhance international trade and profitability.
In order to assist African financial institutions and their clients facilitate international trade, AfPAY was launched to address the banking issues that African countries were facing as a result of the exodus of many foreign banks from the region, also owing to costly regulatory and compliance requirements.
The bank stated that the Financial Institutions on the African continent had suffered due to the restriction in their access to international correspondent banking services.
The Bank released a report following the launch of the Afpay, it reads, “African Export-Import Bank (Afreximbank) is delighted to announce the commercial launch of Afreximbank Trade Payment Services or “AfPAY” an intervention designed to facilitate the settlement of international trade on open account terms on behalf of identified African financial institutions and their clients.”
“This curtailment of trade lines effectively shut the entrance of our Financial Institutions to the rest of the world. Trade is the number one driver of growth, and banks’ inability to participate in trade transactions will lead to reduced growth in our economies and increased poverty.”
Also commenting on the launch of its payments services Executive Vice President, Finance & Administration, Afreximbank, Mr. Denys Denya said, “African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions.
“We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”
It should be recalled that on January 15, 2022, Investors King reported that Afreximbank launched the Pan-African payment and settlement system (PAPSS), a platform that will make cross-border transactions easier and also reduce third currencies for intra-African transactions.
