By Merit Ibe
The management of Africa Continental Free Trade Area (AfCFTA) says the abnormalities in the foreign exchange conversion within the continent poses a major setback in its GDP growth.
According to AfCFTA, that is the reason the launch of the Pan-African Payments and Settlements System (PAPSS) of the Afriexim Bank debuted last week to enable the continent save $5 billion annual loss from the accruals and conversions to dollars in exchange rate.
AfCFTA Secretary- General, Mr Wamkele Mene, who made this known at a webinar explained that the continent has about 42 carriage ability corridors, which currently posed challenges on ease of trade, ease of access to new markets for traders, manufacturers, importers and exporters.
In addition, the AfCFTA scribe also added that the inequality in exchange rate system which cost the continent about $5 billion yearly can be seen in terms of lack of competitiveness in trade, lack of affordability of trade and lack of access to trade. He, however, pointed out that Afriexim’s payment settlement system has the potential to be a game changer particularly for small businesses, young entrepreneurs that want to access any market at the cost of carrying out trade business in the continent that has been a barrier for decades.