The African Export-Import Bank, or Afreximbank, announcement On Thursday (September 29), a general launch of a payment service called AfPAY with the stated aim of facilitating transactions between African financial institutions.
The announcement said: “Afreximbank has developed the product specifically to address the banking challenges faced by African economies due to the withdrawal of many international banks from the continent – exits attributable to stringent regulatory and compliance requirements as well as to costs.
“Trade is the main engine of growth, and the inability of banks to participate in commercial transactions will lead to reduced growth in our economies and increased poverty.”
The Cairo bank said in the announcement that AfPAY has been in a pilot phase for more than a year and processes more than half a billion payments between African states per month.
According to the announcement, Zimbabwe was a significant participant in the pilot project and more than 20 financial institutions in the country are using AfPAY.
Denys Denya, Executive Vice President Finance and Administration at Afreximbank, said in a prepared statement: “For at least a generation, African banks have been plagued by limited access to reliable banking partners willing to support their businesses. cross-border commercial 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.
According to the bank, its assets amount to approximately $25 billion. From 2016 to 2021, he said, he shelled out more than $51 billion.
AfPAY’s move out of pilot mode comes at a time of growing financial innovation among businesses serving African businesses and consumers. Two weeks ago, PYMNTS reported on Wayapay, which launched a US-based digital bank and money transfer service aimed at African immigrants.
See also: US fintech WayaPay launches digital banking and transfer app for African immigrants
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