News in brief:
– Afreximbank and PAPSS have partnered with CARICOM to launch CAPSS, a real-time payment system that will enhance cross-border trade by enabling instant transactions in local currencies.
– This initiative aims to reduce transaction costs and create new opportunities for Nigerian farmers and agribusiness owners to access Caribbean markets.
The African Export-Import Bank (Afreximbank) and the Pan-African Payment and Settlement System (PAPSS) have partnered with the Caribbean Community (CARICOM) and the Intra-Regional Payment Committee to facilitate seamless cross-border transactions. This strategic move is set to enhance financial integration between Africa and the Caribbean, reducing transaction costs and improving trade efficiency.
PAPSS, a financial market infrastructure, enables instant cross-border payments in local currencies across African markets. In alignment with this model, Afreximbank announced the successful completion of a Proof of Concept (PoC) for the CARICOM Payment and Settlement System (CAPSS). This initiative is designed to facilitate real-time, local currency transactions across the CARICOM region, eliminating the need for intermediary banks.
From February 19-21, 2025, the Central Bank of The Bahamas hosted a successful test run of CAPSS, with participation from the central banks of The Bahamas, Barbados, Suriname, and Trinidad & Tobago, along with Afreximbank, PAPSS, and Montran Corporation. The trial demonstrated CAPSS’s capability to process instant payments securely and efficiently.
Key benefits for farmers and agribusiness owners
- Real-time transactions: Faster payments for agricultural exports and imports.
- Lower transaction costs: Reduced reliance on costly third-party financial institutions.
- Enhanced trade opportunities: Easier access to CARICOM markets for Nigerian agribusinesses.
This development comes as Nigeria prepares to host the 32nd Afreximbank Annual Meetings (AAM) in June 2025, which will attract global stakeholders to discuss economic integration and investment opportunities.
For Nigerian farmers and agribusiness owners, CAPSS represents a crucial step in creating a more accessible and cost-effective financial ecosystem, opening new opportunities for trade and investment in the Caribbean.
