Zenith Bank, AfCFTA ink agreement to deploy SMARTAfCFTA for Africa trade
Business a.m.
Zenpay Limited, a fully owned subsidiary of Zenith Bank Plc, and the African Continental Free Trade Area (AfCFTA) secretariat signed an agreement at the weekend that will lead to the development, launch and deployment of the SMARTAfCFTA portal designed to break down barriers, facilitate and bolster trade in Africa.
Ebenezer Onyeagwu, chairman, Zenpay Limited, and Wamkele Mene, secretariat-general, AfCFTA Secretariat, in a display of pan-African cooperation, signed the agreement at Zenith Bank headquarters, in Lagos, Nigeria, thus establishing the first bricks of a digital trade edifice that would, in time, bring African commerce to new heights.
The development comes as a follow-up to the Memorandum of Understanding (MoU) which was previously signed by both parties during the 8th annual edition of Zenith Bank’s international trade seminar on non-oil export which was held on Wednesday, August 8, 2023.
During the agreement signing, Onyeagwu expressed his enthusiasm for the collaboration with the AfCFTA Secretariat, highlighting its significance given the current understanding of trade flows in Africa.
“In Africa, intra-African trade constitutes only about 20% of total trade, with the rest going overseas, despite Africans making up 18% of the world population but contributing less than 5% to global GDP. By trading within Africa, we anticipate building prosperity across the continent,” said Onyeagwu.
He further stated that the initiative is not driven by profit but by the need to support the African Continental Free Trade Area, aiming to create a unified African market, enhancing economic integration and standardising customs and practices.
Also speaking during the agreement signing, Wamkele Mene, the secretary-general of the AfCFTA secretariat, expressed his delight over the partnership with Zenpay Limited in developing SMARTAfCFTA.
He appreciated Jim Ovia, founder and chairman of Zenith Bank Plc, for his commitment to the project.
According to Mene, “Four years ago, we discussed and envisioned SMARTAfCFTA as a digital platform to empower SMEs and young entrepreneurs in Africa, facilitating their inclusion in trade and boosting intra-African trade. This platform will serve as a repository for crucial trade data, offering insights on rules of origin and market intelligence, thus playing a pivotal role in implementing the AfCFTA agreement.
“Today is a testament that working together with our African partners in this case, Zenith Bank, shows that their commitment goes beyond their profit margins to their stakeholders, but are motivated by our shared duty towards the continent [of Africa],” he added.
Speaking about the Pan-African Payment and Settlement System (PAPSS) alongside the SMARTAfCFTA portal, Mene described PAPSS as “Africa’s payment highway”.
The AfCFTA secretary-general clarified that, unlike PAPSS, SMARTAfCFTA is not a payment platform itself but will be interoperable with PAPSS, allowing functionalities that facilitate easy payments. He also emphasised that these platforms complement each other and are not in competition.
In his words: “We promote and encourage only one payment platform — PAPSS. Our goal is to integrate the digital ecosystem we are developing into PAPSS. We are committed to fostering innovation within this framework, ensuring it supports a seamless continental payment system without creating competition among platforms.”