Onafriq has announced the launch of a new cross-border payment service in Ghana, signaling a transformative shift in the financial ecosystem of Africa. This initiative, in collaboration with the Pan-African Payment and Settlement System (PAPSS), aims to fortify regional money transfers and strengthen intra-African trade. Recognizing the pressing challenges of high transaction fees and opaque exchange rates, the service offers a seamless solution enabling users to send and receive funds directly to mobile wallets and bank accounts via partner banks and financial institutions. By targeting small and medium enterprises (SMEs) and retail consumers, the service ensures real-time transactions, addressing long-standing friction in cross-border payments. The African Export-Import Bank (Afreximbank) serves as the settlement agent, reinforcing the reliability of this service.
Bridging Financial Gaps and Elevating Accessibility
Onafriq’s mission, as articulated by CEO Dare Okoudjou, is to make financial services more attainable and to surmount the barriers created by African borders. Through this strategic partnership with PAPSS, the company positions itself at the nexus of financial innovation, aiming to redefine cross-border payments within the continent. PAPSS CEO Mike Ogbalu III underscores the tremendous potential in integrating the African financial landscape, highlighting how this service can empower SMEs and individuals to fully participate in the growing economic landscape. This development is not solely about technology; it’s about fostering an inclusive economic environment that empowers diverse stakeholders across the continent. With the support of the Bank of Ghana, the six-month pilot phase will scrutinize several critical aspects such as transaction volumes and user engagement, ensuring the effectiveness and scalability of the service.
Supporting the African Continental Free Trade Area Vision
Onafriq has established a vast network spread across 43 African nations, granting access to over 1 billion mobile wallets and 500 million bank accounts, setting new standards for financial accessibility and inclusion. This endeavor is driven by PAPSS, a collaboration between Afreximbank and the African Union, which lays down a robust financial framework in line with the African Continental Free Trade Agreement (AfCFTA). Through PAPSS, Onafriq facilitates financial inclusion by enabling seamless transactions throughout Africa’s diverse markets. This cooperative effort not only eases transactions but also supports the comprehensive vision of a unified and accessible financial system within Africa. The launch of this service signifies a leap forward in achieving a financially integrated future, laying an essential foundation for empowering Africans economically. By tackling significant hurdles in cross-border transactions, Onafriq’s initiative offers fresh opportunities to SMEs and individuals, boosting innovation and growth across the continent while adhering to the AfCFTA’s objectives.