The African Export-Import Bank, or Afreximbank, announced Thursday (Sept. 29) the broad launch of a payment service called AfPAY with the stated goal of facilitating easier transactions among African financial institutions.
The announcement said: “Afreximbank 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.
“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.”
The Cairo bank stated in the announcement that AfPAY has been in a pilot phase for more than a year and is processing more than half a billion payments among African states monthly.
According to the announcement, Zimbabwe has been a significant participant in the pilot and more than 20 financial institutions in the country are using AfPAY.
Denys Denya, executive vice president for finance and administration at Afreximbank, said in a prepared statement: “African banks have, for at least a generation, been dogged by the limited access to dependable banking partners willing to support their cross-border trade transactions. 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 ecosystem that will accelerate its development and economic growth.”
According to the bank, its assets stand at about $25 billion. From 2016 to 2021, it said, it disbursed more than $51 billion.
The shift of AfPAY out of pilot mode comes at a time of growing financial innovation among companies serving African businesses and consumers. Two weeks ago, PYMNTS reported on Wayapay, which launched a digital bank and money-transfer service based in the United States aimed at African immigrants.
See also: US FinTech WayaPay Launches Digital Bank, Transfer App Aimed at African Immigrants
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