ABUJA, Nigeria, CMC — The Africa Export-Import Financial institution (Afreximbank) has efficiently piloted the Caribbean model of its cost system, which permits companies in nations that use completely different currencies to commerce with out requiring a 3rd forex.
“We’re calling it PAPPS (The Pan-African Funds and Settlement System) in Africa. So within the Caribbean, it’s the Caribbean Fee and Settlement System (CAPSS),” stated Okechukwu Ihejirika, the appearing chief working officer on the Barbados-based Caribbean Workplace at Afreximbank.
CAPSS is a digital monetary infrastructure that facilitates real-time, cross-border funds in home currencies, eliminating the necessity for United States {dollars} or different third-party currencies in commerce transactions
“Certainly, this is among the success tales that we’re additionally asserting as a result of after we say that Africa and the Caribbean, we’re not simply traditionally and culturally linked, we additionally linked when it comes to the type of challenges that we’ve to take care of,” Ihejirika informed Caribbean journalists on the thirty second annual conferences of Afreximbank (AAM2025) going down right here by means of Saturday.
He stated that issues or options present in one space — Africa or the Caribbean — would work within the different and that PAPPS took place as a result of Africans wanted to create a platform that facilitates intra-regional commerce in native currencies.
“And after we got here to the Caribbean, we noticed that there was an identical downside there, and there’s little question that it was welcomed with each palms by the committee of central financial institution governors,” he stated, referring to PAPPS.
He stated there was a proof of idea in February from the central banks of The Bahamas and Barbados to substantiate that CAPS can work.
“And I’m completely happy to announce that it was a powerful success, that proof of idea,” he stated, including that Afreximbank now must do a full-scale pilot.
“And what the central financial institution governors have agreed is to broaden the pilot, make it as actual as attainable, as shut as attainable to real-life expertise, bringing not solely nations which have fastened currencies to a US greenback however these additionally who’re a bit floating.”
Ihejirika stated that when that pilot is profitable, “we hit the street straight up and have CAPS launched, and we consider that it’s not going to take time in any respect.”
Since 2022, no less than 12 of the 15 member nations of the Caribbean Neighborhood (CARICOM) have acceded to the partnership settlement between CARICOM nations and Afreximbank.
Ihejirika acknowledged that Afreximbank is interested by doing enterprise with all CARICOM nations, including that the financial institution is hopeful that it’ll welcome Jamaica and Trinidad and Tobago, two of the most important economies within the Caribbean, as members.
“We’re wanting on the pipeline of virtually two billion US {dollars},” Ihejirika stated, noting that Afreximbank introduced final month US$500 million in offers with an entity in Suriname.
“And all this goes to painting the purpose that we imply enterprise in what we’re going to do. We goal to foster a move of capital between the Caribbean and Africa and vice versa. And wish to advertise with all that we’ve.”
Ihejirika acknowledged that Afreximbank’s Caribbean workplace would announce roughly US$200 million in offers over the following two months. The financial institution held a roadshow in Guyana two weeks in the past, dedicating US$1 billion to enterprise in that nation.
“Final week, we have been on the Suriname Power, Oil & Fuel Summit & Exhibition, and the financial institution additionally introduced that we’ll be completely happy to help as much as 5 billion US {dollars} … for native Surinamese…
“So we’re speaking about US$1.5 billion. Now you see, US$1.5 is historic. Now, just like the board is magnanimous, we come to them and say, ‘These are the place we see the alternatives and establish with us.’
“So it’s one thing that’s been steadily ramping up. And what that goes to justify that’s the truth that that is certainly an thought whose time has come, and when that occurs, no one can cease it, after which it grows …” Ihejirika informed reporters.
