This feature pieces takes a focus on all important shades on Financial Services-AfCFTA.
The development of cross-border payments and other underutilized financial services in Africa, as highlighted by AZA Finance Country Manager Nana Yaw Owusu Banahene, is expected to have a positive impact on the African Continental Free Trade Area (AfCFTA) and Micro, Small, and Medium-sized Enterprises (MSMEs) in Africa.
One of the main goals of the AfCFTA is to boost intra-African trade by creating a single market for goods and services in Africa. The development of cross-border payment solutions, such as the Pan-African Payment and Settlement System (PAPSS), will help to streamline financial transactions between countries and reduce transaction costs. This will make it easier for businesses, including MSMEs, to trade with other countries within the AfCFTA region.
Financial Services-AfCFTA : A Further Insight
Furthermore, the development of tailored solutions provided by fintechs for cross-border payments, as suggested by Mr. Banahene, will be particularly beneficial for MSMEs, which often struggle with accessing traditional banking services. These solutions will enable MSMEs to receive and make cross-border payments more easily and securely, thus facilitating their participation in regional and global trade.
In addition to cross-border payments, the development of other underutilized financial services, such as savings and insurance, will also be beneficial for MSMEs. These services can help to provide a safety net for MSMEs, which are often vulnerable to financial shocks and lack the resources to cope with them.
Overall, the development of cross-border payments and other underutilized financial services in Africa is expected to promote financial inclusion and economic growth, particularly for MSMEs, and support the goals of the AfCFTA.
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Olatunji Abdulrazaq CNA,ACTI