The African Development Bank Group (www.AfDB.org) and the government of São Tomé and Príncipe signed a US$3.2 million loan agreement to improve the National Switch payment system, which supports the clearing and settlement of retail and high-value payments across the country.
The upgrade will enable Real-time Automatic Gross Settlement (RTGS) modules and Automated Clearinghouse functionality that enhance clearing and settlement of payments. Through the RTGS, high-value transfers are settled at the Central Bank in real time, reducing liquidity and credit risks within the system. The upgrade will enable the rise of digital payments, mobile money and other digital services.
The Bank’s Board of Directors approved the loan on March 8 with funds to be disbursed from the Nigeria Trust Fund. The Fund is one of the Bank Group’s weapons that supports the development efforts of low-income regional member countries in need of concessional financing. This funding will complement a $2 million African Development Fund grant made in 2017 to support the country with the modern Automatic Transfer System (ATS+). The African Development Fund is the Bank’s main soft lending window.
The agreement was signed on March 23, 2023 during a brief ceremony attended by the Minister of Planning, Finance and the Blue Economy of São Tomé and Príncipe, Ginésio da Mata, and the Bank’s representative for Angola and São Tomé and Príncipe , Pietro Toigo.
Commenting on the signature, Ginésio da Mata said: “This fund will facilitate the financial inclusion of the population and a greater digitalization of financial services”.
Toigo said: “We are delighted with the Nigerian Government’s support and São Tomé and Príncipe’s determination to integrate its financial system into the continental and global economy”.