This week, the Pan-African Payment and Settlement System (PAPSS) was launched in Kenya and Rwanda. Launched by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS was launched by KCB Group in Kenya on Feb. 27 and Bank of Kigali in Rwanda on Feb. 26.
KCB and Bank of Kigali customers can now send and receive cross-border payments using PAPSS. The service is fully operational and accessible via the banks’ mobile applications and branch networks, enabling seamless transactions across African borders. With this launch, businesses and individuals can benefit from faster, more cost-effective, and secure payments without relying on correspondent banks or third-party currencies.
“The customers will experience faster, more cost-effective, and secure cross-border transactions from the comfort of their banks’ mobile applications or through their branches,” PAPSS CEO Mike Ogbalu III said. “Businesses can trade more freely and competitively by eliminating the need for correspondent banks outside the continent and removing dependencies on third-party currencies. This transformation is set to unlock new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.”
Ogbalu said that the PAPSS network, which began in 2022 in a pilot phase across the West African Monetary Zone (WAMZ), had successfully grown to include 15 central banks, more than 150 commercial banks, and 14 switches, adding that the current “expansion marks a significant stride toward our goal of connecting the entire continent, ensuring that every African citizen can benefit from seamless, cost-effective cross-border transactions”.
“With only 16 per cent of Africa’s total trade occurring intra-regionally, the launch of PAPSS in Kenya and Rwanda is a significant step in unlocking the continent’s potential,” continued Ogbalu. “We believe that this innovative financial market infrastructure will facilitate greater trade opportunities, economic growth, and financial empowerment between the Eastern African countries and the rest of Africa.”
“We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint,” KCB Group CEO Paul Russo said. “Our entry into PAPSS aligns perfectly with our strategy of supporting economic growth in Kenya and across Africa by facilitating seamless financial transactions.”
“This system allows people to send money quickly,” Bank of Kigali CEO Dr. Diane Karusisi said. “For example, if someone sends Rwandan francs from Rwanda, it can reach Ghana in their local currency. The system converts the currency to meet the local requirements. Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable.”
