The government of Sao Tome and Principe, a country in Central Africa, has received a $3.2 million loan from the African Development Bank (AfDB) to improve its payment infrastructure.
Using the funding from this loan, Sao Tome and Principe may improve its national switch payment system, which facilitates the clearing and settlement of retail payments across the entire country.
Real Time Gross Settlement (RTGS) modules will be able to handle payments in real-time success can be attributed to the upgrade.
The Nigerian Trust Fund would be used to disburse the loan.
One of the AfDB’s divisions, the trust fund supports the development initiatives of the bank’s low-income regional members that call for concessional funding.
Ginésio da Mata, the minister of planning, finance, and the blue economy for Sao Tomé and Principe, and Pietro Toigo, the AfDB’s country manager for Sao Tomé and Principe, signed the deal.
This fund will make it easier for people to access financial services and will accelerate the digitization of the financial industry. Mata stated.
“We are pleased with the Nigerian government’s backing and Sao Tome and Principe’s commitment to integrating its financial system into the regional and global economies.” Toigo tacked on.
The payment system in Sao Tome and Principe will now be able to transmit money instantly.
The use of mobile money, digital payments, and other digital services will rise as a result of this invention. Also, it will result in a decrease in the nation’s credit and liquidity concerns.
This funding will go toward bolstering a $2 million grant from the African Development Fund provided in 2017 to help the nation establish an automated transfer system (ATS+).
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