Africa can Save R887 Billion Through a No-Dollar Payment System: Standard Bank

Standard Bank has highlighted that a new no-dollar payment system could save African businesses around R887 billion ($5 billion) annually. This initiative, part of the Pan-African Payment and Settlement System (PAPSS), aims to streamline cross-border transactions across Africa without requiring the U.S. dollar as an intermediary. Previously, African businesses often had to convert local currencies into dollars or euros to settle intra-continental transactions, which added extra costs and delays.

PAPSS, developed in partnership with the African Continental Free Trade Area (AfCFTA) and the African Export-Import Bank (Afreximbank), allows transactions directly in local currencies. This system is designed to accelerate payments between African nations, reduce reliance on non-African banks, and enhance economic integration across the continent. By lowering transaction costs and reducing currency conversion requirements, PAPSS aims to boost intra-African trade and support the continent's economic growth. 

This move is expected to greatly benefit small to medium-sized businesses, which are often most impacted by high transaction fees, enabling faster and cheaper trading within Africa's diverse economic landscape. 

West Arekamhe