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Cross-border retail payments in the Tripartite Area in support of the African Continental Free Trade Agreement
Journal of Payments Strategy & Systems,
16
(3),
231-243
(2022)
Abstract
Cross-border payments initiatives are rapidly proliferating on the African continent. Both banks and non-bank financial institutions are working to extend digital financial services to support the growing demand for the transfer of funds across borders, including remittances, which provide a lifeline for vulnerable households such as those supported by working migrants. This article provides insight on the concept of a cross-border retail payments scheme for credit transfers within a geographical area of the African continent known as the Tripartite Free Trade Area. The paper elaborates on how such a scheme can be utilised to guide the delivery of payments in a manner that is cost-effective, rapid and transparent. This proposed scheme is in line with the G20 Roadmap for Interoperable Payments and would also support the vision of the African Continental Free Trade Area to enhance intra-African trade.
Keywords: regional clearing and settlement; Africa; remittances; low-value payments; Southern African Development Community; East African Community; Common Market for Eastern and Southern Africa; cross-border payment schemes
The full article is available to subscribers to the journal.
Author's Biography
Juliet Rugeiyamu Kairuki is Managing Director of FINSYS. Her previous positions include as Executive Director of the Tanzania Investment Centre and General Manager responsible for Southern African Development Community at the Banking Association South Africa.
Arthur Cousins is Lead Payments Consultant at FINSYS. A former board member of SWIFT, he has also worked at the Southern African Development Community as Lead Payments Consultant for the SADC Integrated Electronic Settlement System and for transactions cleared on immediate basis.
