African Banks from Kenya and Rwanda Merge into Transnational Payment System

The Pan-African Payment and Settlement System (PAPSS), a groundbreaking initiative developed by Afreximbank, the African Union Commission (AUC), and the AfCFTA Secretariat, has made significant strides in its mission to streamline financial transactions and accelerate economic integration across Africa.

Launched initially in Nigeria, PAPSS has been integrated by the KCB Group in Kenya and the Bank of Kigali in Rwanda. Kenya's KCB Group launched the system on February 27 in Nairobi, while Bank of Kigali introduced it a day earlier, on February 26, in Kigali.

PAPSS is designed to enable customers to send and receive payments across Africa via mobile apps and branch networks. This innovative system eliminates the need for third-party currencies and correspondent banks, making cross-border transactions faster, cheaper, and more secure.

Dr. Diane Karusisi, CEO of Bank of Kigali, announced that entrepreneurs in Rwanda can now receive instant payments in Rwandan francs or USD from any member country. She emphasised that the service is fast, affordable, and reliable.

Mike Ogbalu III, CEO of PAPSS, expressed his excitement, stating that this transformation unlocks new opportunities for trade and investment. He further highlighted that African Small and Medium Enterprises (SMEs) can now access broader markets and contribute to local economies thanks to the integration of PAPSS.

Paul Russo, CEO of KCB Group, expressed his desire to enhance trade and payments in Africa by leveraging digital capabilities and a regional footprint. He reiterated the potential for PAPSS to revolutionise the financial landscape in Africa.

Since its pilot launch in 2022, PAPSS has expanded to include 15 central banks, 150+ commercial banks, and 14 payment switches. This significant expansion has not been previously stated as a goal or target.

In a nutshell, the Pan-African Payment and Settlement System (PAPSS) is a game-changer for Africa's financial sector. By streamlining financial transactions and fostering economic integration, PAPSS is set to unlock new opportunities for trade, investment, and economic growth across the continent.