BTA2023 Kenya’s KCB Group and Rwanda’s Bank of Kigali have become the first banks in their respective countries to integrate the Pan-African Payment and Settlement System (PAPSS), a milestone expected to enhance financial connectivity and intra-African trade.
Why It Matters
Developed by Afreximbank, the African Union Commission (AUC), and the AfCFTA Secretariat, PAPSS eliminates the reliance on third-party currencies and correspondent banks, making cross-border transactions faster, cheaper, and more secure.
Key Developments
- Bank of Kigali launched PAPSS on February 26 in Kigali.
- KCB Group followed with its launch on February 27 in Nairobi.
- Customers can now send and receive payments across Africa through mobile apps and branch networks.
What They’re Saying
- Mike Ogbalu III, CEO of PAPSS: “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: “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: “Entrepreneurs in Rwanda can now receive payments instantly in Rwandan francs or USD from any member country. This service is fast, affordable, and reliable.”
Big Picture
Since its pilot launch in 2022, PAPSS has expanded to:
- 15 central banks
- 150+ commercial banks
- 14 payment switches
With only 16% of Africa’s trade occurring within the continent, PAPSS is set to streamline financial transactions and drive economic integration across Africa.
