The pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade, Afrexibank, has launched its “AFPAY” payment services to improve international trade and profitability.
In order to help African financial institutions and their customers facilitate international trade, AfPAY was launched to address the banking problems that African countries were facing following the exodus of many foreign banks from the region, also due to costly regulatory and compliance requirements.
The bank said that financial institutions on the African continent have suffered from the restriction of their access to international correspondent banking services.
The Bank released a report following the launch of Afpay, it reads, “The 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 open account international trade on behalf of African financial institutions. identified and their customers.
“This reduction in trade lines has effectively closed the entrance of our financial institutions to the rest of the world. Trade is the main engine of growth, and the inability of banks to participate in trade transactions will lead to reduced growth in our economies and increased poverty.
Also commenting on the launch of its payment services, Executive Vice President, Finance and Administration, Afreximbank, Mr. Denys Denya said: “African banks have, for at least a generation, been hampered by limited access to reliable banking partners willing to support their cross-border business transactions.
“We are pleased to bring to market a product that transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa to an international financial ecosystem that will accelerate its development. and economic growth.
It should be recalled that on January 15, 2022, king of investors reported that Afreximbank has launched the Pan-African Payments and Settlement System (PAPSS), a platform that will facilitate cross-border transactions and also reduce third-party currencies for intra-African transactions.