Chapel Hill Denham completes first-ever cross-border client trade through PAPPS

The Nigerian Exchange Limited (NGX) and Ghanaian Stock Exchange (GSE) have successfully completed the first Pan-African Payment and Settlement System (PAPSS) client transaction between both West African countries. This trade, which is the first of its kind, was executed by Chapel Hill Denham Securities Ghana Limited (CHDG) and Chapel Hill Denham Securities Limited (CHDS).

PAPSS is a cross-border, financial market infrastructure enabling payment transactions across Africa and promises instant and simplified pan-African payments. It was designed by the Convergence Council of the West African Monetary Zone (WAMZ) as a private sector-driven approach for cross-border clearing and settlement with the African Export–Import Bank (Afreximbank) as a clearing and settlement agent. The system addresses the historic challenges of making payments across African borders, especially regarding exchange rates.

PAPPS was designed as a private sector-driven approach for cross-border clearing and settlement.

The historic payment was from CHDG through Stanbic IBTC Capital Limited (“the Bank”) via PAPPS, for the purpose of equity trading on the Nigerian Exchange Limited (the “Transaction”). The fund was received in Nigeria by the CHDS in Naira and used in the purchase of shares as requested by CHD Ghana.

This is part fulfilling for the West African Capital Markets Integration Council (WACMIC) whose overarching objective is to establish a harmonized regulatory environment for the issuance and trading of financial securities across the region. WACMIC comprises the region’s commissions and securities exchanges in WAEMU, Ghana, Nigeria, Sierra Leone, and Cape Verde.

“The process was seamless and time-friendly, save for a lot of documentation required by the PAPPS,” said Akeem Shadare, the Managing Director of Chapel Hill Denham Securities Limited, commenting on the transaction. “It is a welcome development that will enable cross-border transactions across continents and increase market activity. Unfortunately, this platform is yet to be implemented for use in securities trading by the Central Bank of Nigeria. We are hopeful that the Nigerian Government will be able to adapt same to enable stockbroking firms in Nigeria to leverage this opportunity.”

Read also: Private sector investment critical to infrastructural development in Africa – Bolaji Balogun

About Chapel Hill Denham

Chapel Hill Denham is a leading independent investment banking, securities trading, and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution, and investment services to corporations, governments, institutions, and individuals involved in investing in and developing Nigeria and Africa.

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