The Central Banks of the Caribbean Community (CARICOM) have signed an agreement to adopt the Pan-African Payment and Settlement System (PAPSS) for intra-regional trade transactions. PAPSS is a system designed to facilitate cross-border payments within Africa, and the Caribbean Central Banks hope that it will do the same for trade between Africa and the Caribbean.
The African Export-Import Bank (Afreximbank), which developed PAPSS, will provide support to the Caribbean Central Banks during the implementation process. A pilot project is being launched to test the system before it is fully rolled out in the Caribbean. The official launch is expected to take place in the fourth quarter of 2024.
PAPSS is expected to boost trade between Africa and the Caribbean by reducing the cost and time of cross-border payments. It will also help to improve transparency and security in trade finance transactions.
The adoption of PAPSS by the Caribbean Central Banks is a significant development for regional trade. It is hoped that PAPSS will help to increase trade between Africa and the Caribbean, and to promote economic growth in both regions.