By 
The Pan-African Payment and Settlement System (PAPSS), spearheaded by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, has achieved a crucial milestone in driving financial integration across Africa. The system has officially gone live in Kenya through KCB Group and in Rwanda via the Bank of Kigali, marking a significant leap forward in streamlining cross-border transactions across the continent.
KCB Group and Bank of Kigali launched PAPSS on February 26th in Kigali and February 27th in Nairobi, respectively. As the first banks in their respective countries to adopt PAPSS, they reaffirm their commitment to enhancing intra-African trade and advancing AfCFTA’s goal of fostering a seamless and interconnected African economy.
With PAPSS now integrated into their operations, customers can conduct cross-border transactions effortlessly via mobile banking apps and branch networks. The system eliminates reliance on correspondent banks and third-party currencies, offering a faster, cost-effective, and secure method for financial transactions within Africa.
Transforming Cross-Border Payments and Financial Inclusion
PAPSS CEO, Mike Ogbalu III, emphasized the system’s transformative impact on businesses and individuals:
“Customers will benefit from faster, more cost-effective, and secure cross-border transactions directly through their banks’ digital platforms or branches. By eliminating the dependency on foreign correspondent banks and third-party currencies, businesses can now operate more competitively. This revolution in payment infrastructure unlocks new opportunities for trade and investment, empowering African SMEs and strengthening local economies.”
He commended KCB Group CEO Paul Russo and Bank of Kigali CEO Dr. Diane Karusisi for their visionary leadership in pioneering the adoption of PAPSS, underscoring their dedication to financial innovation and regional economic growth.
Since its pilot launch in 2022 within the West African Monetary Zone (WAMZ), PAPSS has experienced significant expansion, integrating 15 central banks, over 150 commercial banks, and 14 payment switches. The recent rollout in Kenya and Rwanda is a crucial step towards achieving continent-wide connectivity, addressing intra-African trade, which currently constitutes only 16% of Africa’s total trade volume.
Bank Leaders on the Strategic Importance of PAPSS
Paul Russo, CEO of KCB Group, reiterated the bank’s commitment to accelerating economic growth through digital payments:
“We aim to play a pivotal role in driving trade and financial integration across Africa by leveraging our digital capabilities and extensive regional presence. Joining PAPSS aligns with our broader strategy to facilitate seamless financial transactions, supporting economic expansion in Kenya and beyond.”
Dr. Diane Karusisi, CEO of Bank of Kigali, highlighted the efficiency and accessibility of the system for businesses and individuals:
“PAPSS enables quick and seamless fund transfers. For instance, a customer in Rwanda can send Rwandan francs, and it will be received in Ghana in local currency without complications. This system ensures businesses in Rwanda can instantly receive payments in Rwandan francs or USD from any participating country. It is fast, affordable, and highly reliable.”
Scaling PAPSS Across Eastern Africa
The rollout of PAPSS in Kenya and Rwanda marks a pivotal moment in Africa’s financial integration journey. However, Ogbalu III emphasized that broader adoption across Eastern Africa remains essential. He urged more central and commercial banks in the region to integrate PAPSS into their systems, aligning with AfCFTA’s broader mission of fostering a unified and prosperous African economy.
With this latest expansion, PAPSS continues to redefine Africa’s cross-border payment landscape, unlocking new opportunities for trade, investment, and economic empowerment across the continent.
Comments