Expanding Development of the Pan-African Payment and Settlement System Continues
The Pan-African Payment and Settlement System (PAPSS), a groundbreaking initiative launched by Afreximbank and the African Union two years ago, is making significant strides in simplifying cross-border transactions across Africa. The system, designed to provide instant or near-instant cross-border payments between countries, is gaining momentum, particularly in regions where currency inconvertibility and payment inefficiencies have hindered cross-border trade.
Since its launch, the number of organisations participating in PAPSS has grown steadily. As of mid-2025, PAPSS is operational in 16 countries, with plans to onboard 30 countries and connect 500 million bank accounts by the end of the year. This broad regional expansion encompasses West, East, North, Central, and Southern Africa.
Key markets showing potential include countries already participating in PAPSS operations, such as Ghana, where approximately 80% of banks are connected to the system. The strong adoption base in Ghana could drive business growth through easier cross-border payments and currency exchanges.
Other promising markets include those with high trade volume but currency diversity challenges. PAPSS addresses issues such as multiple African currencies and regulatory environments that cause the continent to lose about $5 billion annually in fees, delays, and opportunity costs. Countries involved in trade corridors where currency conversion and settlement delays currently impose up to 16% cost on transactions will see significant benefit.
The PAPSS African Currency Marketplace has already onboarded over 80 African businesses during its pilot phase, providing a platform for direct currency conversion to cut costs and speed settlements. This supports growth in markets with vibrant intra-African commerce.
Regions with developing technological infrastructure but growing payment system adoption are also expected to benefit from PAPSS's growth. While rural areas in some countries face challenges due to infrastructure gaps, expanded mobile and banking access coupled with PAPSS growth are expected to unlock new business opportunities for both urban and semi-urban markets.
Last week, Kenya's KCB Group and Rwanda's Bank of Kigali became live on PAPSS, enabling cross-border payments for their customers. This integration may contribute to economic growth in Kenya and Rwanda by facilitating trade and investment. The number of central banks signed on to PAPSS has increased to 15, indicating growing support from African governments for the system.
The growth of PAPSS's user base and network may create opportunities for businesses in countries where PAPSS is already live, such as Kenya and Rwanda. African Small and Medium Enterprises (SMEs) now have the opportunity to access broader markets through PAPSS, thanks to the participation of KCB Group and Bank of Kigali.
PAPSS CEO Mike Ogbalu III reported that the system is making rapid progress. The integration of KCB Group and Bank of Kigali onto PAPSS is expected to unlock new opportunities for trade and investment in Kenya and Rwanda. As of January, PAPSS has live commercial banks in only 12 countries, with four more - Tunisia, Comoros, Uganda, and Egypt - in the onboarding process.
In summary, African markets with existing or planned PAPSS integration, active cross-border trade under the African Continental Free Trade Area (AfCFTA), and sectors suffering from costly currency conversion and payment delays stand out as the most promising for business growth with PAPSS. Countries such as Ghana and broader regional clusters aiming for efficient and cost-effective intra-African payments will particularly benefit from this system's expansion.
The growth of PAPSS is providing opportunities for African businesses, as seen in Kenya and Rwanda, where the integration of KCB Group and Bank of Kigali enables cross-border payments, potentially contribuing to economic growth. With the system's aim to connect 500 million bank accounts across various African regions by the end of the year, it will support business growth, particularly in regions with high trade volume and currency diversity challenges. This expansion of PAPSS could also strengthen the finance industry, allowing African Small and Medium Enterprises (SMEs) to access broader markets, simplifying cross-border transactions, and potentially minimizing financial losses due to fees, delays, and opportunity costs.
