Kenya’s KCB Group and Rwanda’s Bank of Kigali are the first banks to adopt the Pan-African Payment and Settlement System (PAPSS), enhancing intra-African trade. PAPSS, launched in February 2023, eliminates third-party currency needs, streamlining cross-border transactions. CEOs highlight its potential to boost trade opportunities and support local economies. Since its pilot in 2022, PAPSS has engaged numerous banks and aims to improve Africa’s economic integration.
Kenya’s KCB Group and Rwanda’s Bank of Kigali have become pioneers by integrating the Pan-African Payment and Settlement System (PAPSS) in their respective nations. This initiative is expected to enhance intra-African trade and strengthen financial connectivity between countries.
The PAPSS, developed by Afreximbank, the African Union Commission (AUC), and the AfCFTA Secretariat, eliminates reliance on third-party currencies and correspondent banks. Consequently, it streamlines cross-border transactions, making them faster, less expensive, and securer for users.
The implementation of PAPSS was marked by Bank of Kigali’s launch on February 26 in Kigali, followed by KCB Group’s launch on February 27 in Nairobi. Both institutions now enable customers to facilitate payments across Africa through mobile applications and their branch networks.
Mike Ogbalu III, CEO of PAPSS, stated, “This transformation unlocks new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.” Paul Russo, CEO of KCB Group, emphasized the importance of trade by saying, “We want to play a bigger role in catalyzing trade and payments in Africa, leveraging our digital capabilities and regional footprint.” Dr. Diane Karusisi, CEO of Bank of Kigali, remarked, “Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable.”
Since its pilot launch in 2022, PAPSS has made significant progress, engaging 15 central banks, over 150 commercial banks, and 14 payment switches. Given that only 16% of Africa’s total trade takes place within the continent, PAPSS aspires to facilitate smoother financial transactions and promote economic integration across Africa.
The integration of the Pan-African Payment and Settlement System (PAPSS) by KCB Group and Bank of Kigali represents a substantial advancement in enhancing intra-African trade and financial connectivity. By eliminating the need for third-party currencies, PAPSS aims to make transactions more efficient and secure, thus fostering broader market access and economic integration across the continent.
Original Source: techlabari.com
