The Pan-African Payment and Settlement System (PAPSS), a financial initiative launched by Afreximbank in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, has taken a major step in enhancing economic integration across Africa. KCB Group in Kenya and Bank of Kigali in Rwanda have officially integrated PAPSS into their banking operations, becoming the first banks in their respective countries to adopt the system.
The launch events took place in Kigali on February 26 and in Nairobi on February 27. Through PAPSS, customers of both banks can now conduct seamless, cost-effective cross-border transactions without relying on correspondent banks or third-party currencies. The system enables individuals and businesses to send and receive payments directly via mobile applications and bank branches, making intra-African trade more efficient.
PAPSS CEO Mike Ogbalu III emphasized the transformative impact of the system, stating that it eliminates dependency on external financial institutions and allows businesses to trade more freely. He expressed gratitude to KCB Group CEO Paul Russo and Bank of Kigali CEO Dr. Diane Karusisi for their leadership in embracing PAPSS.
Originally piloted in 2022 in the West African Monetary Zone (WAMZ), PAPSS has expanded to include 15 central banks, over 150 commercial banks, and 14 financial switches. The system aims to facilitate intra-African trade, which currently accounts for only 16% of the continent’s total commerce.
Paul Russo noted that KCB’s adoption of PAPSS aligns with its broader strategy to catalyze economic growth in Kenya and across Africa. Dr. Diane Karusisi highlighted how PAPSS allows Rwandan entrepreneurs to receive payments instantly in local currency or U.S. dollars from any participating country, making transactions faster, more affordable, and reliable.
The successful rollout in Kenya and Rwanda marks a significant step toward the full continental adoption of PAPSS, reinforcing the vision of a financially integrated Africa under AfCFTA.
