International Monetary Coordination is Key for PAPSS Achivement - Afua Adubea Koranteng
Central Bank Collaboration Pivotal for Pan-African Payment System Success
According to Afua Adubea Koranteng, Managing Partner at Koranteng & Koranteng Legal Advisors, enhanced cooperation between central banks on the African continent is a key factor for the Pan-African Payment and Settlement System (PAPSS) to fulfill its potential.
Koranteng asserts that coordinated regulations are necessary, given the importance of standardized rules and procedures for streamlining intra-African trade. Speaking at the Money Summit organized by the Business and Financial Times, she noted that cooperation between the central banks will lead to more streamlined regulatory frameworks, benefiting the overall effectiveness of PAPSS.
"The collaboration between central banks will be instrumental in establishing a more standardized set of rules and procedures for a strengthened PAPSS," Koranteng stated. "Addressing these issues is essential to the system's success."
Koranteng highlighted that the central banks wield significant influence over PAPSS and thus possess the knowledge required to regulate the system effectively. Collaboration between central banks, she argued, is vital to ensure consistency and coordination in the regulations that govern PAPSS.
One of the potential benefits of a unified regulatory framework would be the improved viability of intra-African trade through the use of local currencies. Koranteng explained that the success of PAPSS would be contingent on each country's currency being robust, thus creating dependencies on local currencies rather than external currencies.
"The beauty of it is that, in most cases, countries will be relying on their local currency, which will bolster the strength of their respective currencies," she said. "If each country has a strong currency, there would be no need for outside dollars."
Koranteng also emphasized the importance of broad public education about PAPSS, arguing that small and medium-sized enterprises (SMEs) should fully comprehend the system in order to maximize its growth potential. The businesswoman cited a recent encounter with a businessman unfamiliar with PAPSS as evidence of the need for public awareness efforts.
Furthermore, in response to arguments from experts advocating for the diversification of African economies, Koranteng expressed the belief that there is ample potential for growth within the continent without the need for such diversification. Instead, she proposed focusing on industrializing the African economies to encourage greater trade between nations.
"I do not believe the issue lies in diversification," Koranteng stated. "There is plenty of room for business growth on the continent. If we focus on industrializing our economies, economic activities within the continent will increase significantly."
(Source: Business and Financial Times)
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- Enhanced collaboration among central banks on the African continent is crucial for the success of the Pan-African Payment and Settlement System (PAPSS), as pointed out by Afua Adubea Koranteng at the Money Summit.
- Koranteng suggests that standardized regulations for PAPSS are necessary, as they would streamline intra-African trade and strengthen the overall effectiveness of the system.
- The businesswoman stresses the importance of central bank cooperation to ensure consistency and coordination in the regulations that govern PAPSS, thereby improving the viability of local currencies within intra-African trade.
- A unified regulatory framework for PAPSS, according to Korantang, would lead to a reliance on local currencies, thereby bolstering the strength of each country's currency and reducing the need for outside dollars.
- Korantang also emphasizes the need for public education about PAPSS, particularly among small and medium-sized enterprises (SMEs), to maximize its growth potential and to empower businesses to fully leverage the benefits of the system.
- Instead of advocating for diversification of African economies, Korantang proposes focusing on industrializing African economies as a means to encourage greater trade between nations and stimulate business growth on the continent.
