KCB Group of Kenya and Bank of Kigali of Rwanda are the first banks in their countries to incorporate the Pan-African Payment and Settlement System (PAPSS), facilitating quicker and cheaper cross-border transactions. This initiative aims to boost intra-African trade and improve economic integration, benefiting local businesses and economies. Since its pilot in 2022, PAPSS has expanded to 15 central banks and 150 commercial banks.
Kenya’s KCB Group and Rwanda’s Bank of Kigali have successfully integrated into the Pan-African Payment and Settlement System (PAPSS), marking a significant milestone in enhancing intra-African trade and financial connectivity. This advancement is poised to streamline business transactions across the continent.
PAPSS, which was developed by Afreximbank in collaboration with the African Union Commission (AUC) and the AfCFTA Secretariat, removes the reliance on third-party currencies and correspondent banks. This innovation results in more efficient, cost-effective, and secure cross-border money transfers.
The Bank of Kigali initiated PAPSS implementation on February 26 in Kigali, followed by KCB Group on February 27 in Nairobi. These integrations now enable clients to execute payments across Africa through mobile applications and branch networks.
CEO of PAPSS, Mike Ogbalu III, stated, “This transformation unlocks new opportunities for trade and investment, allowing African SMEs to access broader markets and contribute to local economies.” Furthermore, Paul Russo, CEO of KCB Group, emphasized the importance of enhancing trade by stating their commitment to harnessing digital capabilities to drive payment solutions in Africa. 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 notably expanded its reach, now involving 15 central banks, over 150 commercial banks, and 14 payment switches. With only 16% of Africa’s total trade occurring within the continent, the PAPSS initiative aims to facilitate economic integration by simplifying financial transactions across Africa.
The integration of KCB Group and Bank of Kigali into the PAPSS represents a pivotal leap toward enhancing intra-African trade and financial connectivity. By eliminating intermediary currency and ensuring quicker, safer transactions, this initiative supports small to medium enterprises in accessing broader markets. The expansion of PAPSS is expected to foster economic growth across the continent, addressing the significant gap in intra-African trading activities.
Original Source: techlabari.com
