AfreximBank launches trade payment services
The African Export-Import Bank (AfreximBank) has announced the commercial launch of its trade payment service which Zimbabwe actively participated in the pilot project.
The regional financier’s service, which is called AfreximBank Trade Payment Services (AfPAY), has been designed to facilitate international trade on open account terms on behalf of identified African financial institutions and their clients.
“AfreximBank is delighted to announce the commercial launch of AfreximBank Trade Payment Services – or AfPAY – an intervention designed to facilitate the settlement of international trade on open account terms on behalf of identified African financial institutions and their clients.
“AfPAY, which has been in a pilot phase for over a year now, currently facilitates over half a billion dollars in monthly payments across our member states. Notably, Zimbabwe has participated actively in the pilot, with 20 of its financial institutions using the solution,” said the institution in a statement.
The bank said it developed the product specifically to address the banking challenges confronting African economies due to the withdrawal of many international banks from the continent– exits attributable to stringent regulatory and compliance requirements as well as costs.
Over the years, financial Institutions on the continent have suffered from the reduction in their access to international correspondent banking services to facilitate their international trade.
“This curtailment of trade lines effectively shut the entrance of our financial institutions to the rest of the world.
“Trade is the number one driver of growth, and banks’ inability to participate in trade transactions will lead to reduced growth in our economies and increased poverty,” said AfreximBank.
The bank’s executive vice president responsible for finance and administration, Denys Denya, said African banks have been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions.
In this context, he said: “We are pleased to introduce into the market a product which transforms this dynamic, which we believe will accelerate cross-border trade on this continent, connecting Africa with an international financial eco-system that will accelerate its development and economic growth.”-ebusinessweekly
