Latest news with #Pan-AfricanPaymentandSettlementSystem
Zawya
28-04-2025
- Business
- Zawya
Afreximbank announces specialized African Continental Free Trade Area (AfCFTA) training to empower African businesses
To enable African businesses to fully capitalise on the opportunities presented by the African Continental Free Trade Area (AfCFTA), African Export-Import Bank (Afreximbank) ( has announced a specialized training program designed to equip enterprises with a deep understanding of the agreement's commercial implications and transformative potential. Scheduled to take place in Abuja, Nigeria, from June 30 to July 2, 2025, the training program is designed to provide businesses with practical policy-relevant insights into the AfCFTA's evolving regulatory and institutional landscape. It will help participants interpret key treaty instruments, ensuring compliance with new trade rules while enhancing their knowledge of regional integration and operational mechanisms. Additionally, the program will serve as a crucial platform for guiding both prospective and existing exporters on new trade developments, equipping them with the tools to navigate tariff and non-tariff barriers across the continent. Conceived and implemented by Afreximbank in collaboration with the American University in Cairo (AUC) and the AfCFTA Secretariat, the training is expected to attract a diverse range of participants, including African corporates engaged in import and export activities, Trade Support Institutions such as Trade Promotion Organizations and Chambers of Commerce, Investment Promotion Agencies, Export Trading Companies, Financial Institutions, and the broader foreign trade community. Participants will also benefit from tailored presentations on key Afreximbank products and initiatives that support the AfCFTA's implementation, including the Pan-African Payment and Settlement System (PAPSS), Africa Trade Gateway (ATG), and various trade finance solutions. Addressing critical knowledge gaps to unlock AfCFTA's potential Reflecting on the significance of the program, Dr. Yemi Kale, Group Chief Economist&Managing Director of Research at Afreximbank, emphasized that while the AfCFTA holds immense potential for Africa's economic growth, its success hinges on the ability of businesses to fully understand and operationalize its provisions. However, limited understanding of its technical and operational aspects has prevented many businesses from fully leveraging its benefits. 'The AfCFTA is not just a policy framework—it is a catalyst for a structural shift in Africa's economic landscape,' said Dr. Kale. 'However, many African businesses are still grappling with limited awareness of the agreement's technical provisions, trade protocols, and strategic benefits. This knowledge deficit has constrained their ability to compete effectively, expand their market reach, and optimize value chains across the continent.' He further explained that without a solid grasp of the AfCFTA's tariff schedules, rules of origin, customs cooperation, and dispute resolution mechanisms, even the most competitive enterprises risk missing out on critical growth opportunities. 'This training is about more than compliance; it is about empowerment. It equips participants not only to meet regulatory requirements but also to develop export strategies, diversify markets, and improve competitiveness.' Tsotetsi Makong, Director Coordination and Programmes at the AfCFTA Secretariat, reinforced this point, stating: 'This training program will help African businesses seeking export opportunities overcome key challenges, including understanding African markets in depth, navigating market rules and compliance requirements, and optimizing cross-border product transportation. To fully harness the AfCFTA's potential, it is essential to address these barriers and build the capacity of African companies to transition from local production for domestic consumption to a model that supports exports across the continent and beyond.' He further highlighted Afreximbank's commitment to the AfCFTA's full implementation, stressing that by developing the necessary competencies and industrial capacity, all African nations can maximize the benefits of a single market. He called on both public and private sector stakeholders to deepen their understanding of the agreement's operationalization to drive sustainable economic growth. Afreximbank's role in advancing the AfCFTA As a key partner to the African Union in the implementation of the AfCFTA, Afreximbank has spearheaded multiple initiatives that enhance intra- and extra-African trade and investment. Leveraging the expertise of its Trade Intelligence Solutions Unit and Human Resources and Learning Department, the Bank serves as the anchor institution for the AfCFTA Training Program, ensuring that African businesses are well-equipped to thrive in the new trade environment. The upcoming training is the second edition and will also mark a milestone as one of the first major events hosted at the recently launched Afreximbank African Trade Centre (AATC) in Abuja. Purposely designed as a strategic hub for trade facilitation, investment promotion, and business collaboration, the AATC features state-of-the-art conference facilities, premium hospitality services, and a dynamic environment conducive to learning and networking . By equipping African businesses with the knowledge and tools needed to navigate the AfCFTA, Afreximbank continues to play a pivotal role in unlocking Africa's vast trade potential and driving economic transformation across the continent. Distributed by APO Group on behalf of Afreximbank. Media Contact: Vincent Musumba Communications and Events Manager (Media Relations) Email: press@ Follow us on: X: Facebook: LinkedIn: Instagram: About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank's total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt. For more information, visit:
Zawya
06-03-2025
- Business
- Zawya
KCB Group and Bank of Kigali launch Pan-African Payment and Settlement System (PAPSS), enabling seamless and affordable cross-border payments across Africa
The Pan-African Payment and Settlement System (PAPSS), launched by African Export-Import Bank (Afreximbank) ( in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat, has recorded a significant milestone in its journey towards enhancing financial integration and economic prosperity across Africa with the official launch of the platform by KCB Group in Kenya and Bank of Kigali in Rwanda. The launches, by the Bank of Kigali in Kigali on 26 th February and KCB in Nairobi on 27 th February, made the two banks the first in their respective countries to integrate the transformative system into their operations, underscoring their commitment to championing intra-African trade and supporting the efforts of the AfCFTA. KCB and Bank of Kigali customers will now be able to 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. Highlighting the benefits of PAPSS to customers of KCB and Bank of Kigali, Mike Ogbalu III, CEO of PAPSS, said, '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. 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.' Mr. Ogbalu III expressed deep gratitude to KCB and Bank of Kigali for their pioneering roles in adopting the PAPSS initiative and commended Paul Russo, KCB Group CEO, and Dr. Diane Karusisi, CEO of Bank of Kigali, 'for their 'visionary leadership and unwavering commitment'. He noted 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, over 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 Mr. Ogbalu III. '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.' He called on other central and commercial banks in Eastern Africa to join the PAPSS family in order to play a pivotal role in the AfCFTA as it worked to build a more prosperous and unified Africa. Speaking on the milestone, KCB Group CEO, Paul Russo, said: "We want to play a bigger role in catalyzing trade and payments in Africa and beyond, leveraging our digital capabilities and regional footprint. Our entry into PAPSS aligns perfectly with our strategy of supporting economic growth in Kenya and across Africa by facilitating seamless financial transactions.' Dr. Diane Karusisi, CEO of Bank of Kigali, highlighted the significance of the partnership: 'This system allows people to send money quickly. 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.' Distributed by APO Group on behalf of Afreximbank. Contact person: Papa Thiongane communications@ Follow us on: LinkedIn: Twitter: Facebook: YouTube: About PAPSS: The Pan-African Payment and Settlement System – PAPSS is a centralised Financial Market Infrastructure that enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions. PAPSS works in collaboration with Africa's central banks to provide a payment and settlement service to which commercial banks and licensed payment service providers across the region can connect as 'Participants'. Afreximbank and the African Union ('AU') first announced PAPSS at the Twelfth Extraordinary Summit of the African Union held on July 7, 2019, in Niamey, Niger Republic, therefore adopting PAPSS as a key instrument for the implementation of the African Continental Free Trade Agreement (AfCFTA). Further, in its thirteenth (13th) extraordinary session, held on December 5, 2020, the assembly of the African Union directed Afreximbank and the AfCFTA secretariat to finalise, among others, work on the Pan-African Payments and Settlements System (PAPSS). The 35th Ordinary Session of the Assembly of the AU further directed the AfCFTA and Afreximbank to deploy the system to cover the entire continent. PAPSS was officially launched in Accra, Ghana, on January 13, 2022, thus making it available for use by the public. For more information, visit:
Zawya
24-02-2025
- Business
- Zawya
What African banks want from AfCFTA?
The continent's financial services industry has a huge role to play in the African Continental Free Trade Area (AfCFTA). After all, it is African banks that will enable all the trade that will determine whether the block is a success. Yet African banking is also an active economic sector in its own right that can benefit from the erosion of national bar- riers and the creation of a single market – but this requires agreement on common rules and regulations. As we examined previously (p. 16), the banking sector can benefit the AfCFTA by enabling financing for intra-African trade, including through the new cross- border payment, clearing and settlement platform, the Pan-African Payment and Settlement System (PAPSS), which allows payments to be made in African as well as international currencies. It is hoped that all of the roughly 600 banks operating in Africa will eventually join the system. The 2024 Pan-African Private Sector Trade & Investment Committee (PAFTRAC) survey found that African financial ser- vices companies would like the AfCFTA to focus on two main areas with regard to their sector: 67% of respondents favoured banking and financial services regulatory harmonisation across all member states, with 65% keen to see the creation of Pan- African open banking systems. These were favoured ahead of the promotion of digital financial services and the creation of a single African currency, and far ahead of the creation of a pan-African capital markets strategy. (See figure overleaf.) The desire for banking harmonisation and open banking systems ultimately comes down to the same ambition: the creation of common financial services regulations that will result in an open banking system. At present, national legislation and regulatory frameworks force banks to operate in national industry silos, as they have to apply for separate banking li- cences under different rules in each ju- risdiction. This adds costs and complexity to their operations, including by requiring the construction of separate digital infra- structure for each market and slowing the expansion of digital-first banks across the Africa. It reduces competition and thus almost certainly depresses the number of people with access to banking services and increases the cost of transactions. Lessons from East Africa Harmonisation is planned for consumer protection laws, data-handling regula- tions, competition policy, intellectual property and digital trade. Yet while it is easy to discuss harmonisation in a vague way, actually achieving it is a far more difficult proposition. The process is usually long and com- plicated, with many stakeholders par- ticipating. It is achievable given sufficient political will but the number of countries involved makes this a huge challenge – although the AfCFTA can learn from re- gional blocks that have already embarked on banking sector harmonisation. The East African Community (EAC), for instance, is already working to create common regulations for cross-border digital payment and banking regulations. EAC member states have agreed to set up a regional central bank and also the East African Financial Services Commission, which is one of the main steps on the road to monetary harmonisation. However, progress on the process as a whole has been slow, with disagreements over where to locate key institutions. The timetable for implementation has repeat- edly slipped and it has been predictably challenging to achieve the agreed macro- economic convergence criteria. The big fear is that the Kenyan banking sector, which is one of the most devel- oped in Africa, will overwhelm banks in neighbouring states. Yet this is perhaps less of an obstacle to financial services harmonisation in the region than in the past, because Kenyan banks are already expanding across the region, even under the existing regulatory framework. Kenya Commercial Bank and Equity Bank operate in other EAC member states. Tanzanian and Ugandan banks in par- ticular are having to face much greater competition but the likes of Tanzania's NMB Bank and CRDB Bank, plus Stanbic Bank Uganda, are responding strongly. Even once harmonisation has been achieved, separate national banking li- cences will still be required but the crea- tion of similar or even standard regula- tions will greatly speed up the process for banks and regulators alike. A harmonised financial system with greater competition should also reduce transaction costs for customers. The AfCFTA could reduce the cost of cross- border bank transactions, encouraging more traders to move from the informal to the formal sectors, prompting them to make greater use of official financial services. Can the AfCFTA benefit African banks? The AfCFTA should benefit African banks in various ways, including by increasing the volume of cross-border payments that they handle. Lifting tariffs, simplifying customs procedures, facilitating greater foreign investment and eroding barriers to the creation of cross-border supply chains should all encourage more intra-African trade. The AfCFTA Secretariat forecasts that the new single market of 1.3bn people in 54 countries will boost intra-African exports by more than 20% within a decade of its launch in 2022, while boosting Africa's exports to the rest of the world by 32% by 2035. Higher levels of economic growth and greater intra-African trade should result in bigger African businesses to generate banking activity, while AfCFTA member states have called for improved market access for SMEs, women and young people, which would help increase banking service penetration rates. The free trade zone should also help create millions of new jobs, many of them well paid, with new employees adding to the pool of potential bank customers. Banks involved in payment clearing and settlement should also experience de- creased liquidity requirements, freeing up more money for other initiatives. The AfCFTA aims to harmonise regula- tions for digital financial services, such as mobile money, crowdfunding and block- chain-based activities, which should pro- mote growth across these sectors. The AfCFTA's Digital Trade Protocol can encourage the uptake of digital products by increasing legal certainty, fostering collaboration across different markets and increasing confidence in the sector. A goal of aligning financial reporting standards has also been agreed, which would simplify information-sharing be- tween regulators and make it easier for providers to pursue cross-border business. It also aims to establish a common set of rules for consumer protection across all parts of the financial services sector. While Africa will still comprise a patchwork of national banking markets, there should be more integration than at present. Most countries do not currently per- mit financial services to be sold to their residents by companies based in other states because of difficulties in determin- ing regulatory responsibility. Changing that will help boost competition. The creation of common – or at least more unified – banking rules could help Africa as a whole comply with interna- tional regulations on tax evasion and money laundering. Illicit financial flows are a substantial problem in large parts of Africa, costing the continent $88.6bn, according to a United Nations estimate in 2023. Moreover, the Financial Action Task Force (FATF) included 13 African coun- tries on its latest grey list in June 2024, up from 10 a year earlier: Burkina Faso, Cameroon, Democratic Republic of Congo, Kenya, Mali, Mozambique, Namibia, Nige- ria, Senegal, South Africa, South Sudan, Tanzania and Uganda. This means that these countries have 'committed to resolve swiftly the identi- fied strategic deficiencies within agreed timeframes' and are subject to increased monitoring, according to FATF. Bringing all jurisdictions up to the required stand- ards will increase confidence in the African banking sector as a whole. Africa's main multilaterals are provid- ing support for African banks to make the most of the AfCFTA. For instance, the Afri- can Development Bank (AfDB) approved a $40m trade finance transaction guarantee facility for Ethiopia's Dashen Bank in Au- gust to support local companies' import and export trade finance. Dashen will provide guarantees to con- firming banks of up to 100% to cover non- payment risk attached to letters of credit and other trade finance instruments issued by Dashen. The company is one of the big- gest private sector banks in Ethiopia, with a network of 860 branches, and can ben- efit from the ongoing liberalisation of the Ethiopian economy as well as the AfCFTA. The AfDB's Director General for East Africa, Nnenna Nwabufo, said: 'Sup- porting trade in Africa is a key priority at the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade, particularly in emerging markets. We are delighted to work with Dashen, a strong partner with extensive knowledge and networks in Ethiopia, on a shared ambition to support the region's trade.' Banks are working with other stake- holders to encourage greater trade within Africa. For instance, Ecobank has part- nered with the AfDB and other develop- ment and multilateral finance institutions to provide trade finance services. Last year it agreed a $200m trade finance facility with the AfDB to support cross-border trade for SMEs and local corporates. Afreximbank has also set up a $10bn Adjustment Fund to help member states cope with economic dislocation caused by lifting trade barriers that will inject more money into the system, with much of it due to be funnelled through the African banking system. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
African Manager
22-02-2025
- Business
- African Manager
Tunisian banks urged to join Pan-African PAPSS system
Tunisian banks undoubtedly still have progress to make to keep pace with the advancements regularly shaping banking activity in most African countries, especially in terms of digitalization. This necessity was strongly emphasized during the 16th edition of the Africa Banking Forum, held from February 18 to 20, 2025, in Tunis, under the theme 'Digitalization and Resilience: Reinventing African Banking.' The Central Bank of Tunisia (BCT), for its part, advocated for inclusive digitalization and greater resilience in the African banking sector, urging Tunisian banking players to join the Pan-African Payment and Settlement System (PAPSS) to boost intra-African trade and investment. 'Let's be proactive. Let's demand that banks reinvent themselves, support them in this transformation, and together, build a financial system that is not only digital but deeply African, rooted in our values and adapted to our realities,' was the message conveyed by the BCT on this occasion. In a speech delivered on behalf of the BCT Governor, Vice-Governor Mourad Abdessalem called on all stakeholders (regulators, banks, fintechs, and public decision-makers) to work together to build a more resilient, inclusive, and forward-looking African banking sector. He also reaffirmed the BCT's commitment to responsible digital transformation, supporting innovation, financial inclusion, and the stability of the banking sector at the continental level. He highlighted the need for African banks to embrace sustainable finance by supporting responsible investments and integrating environmental and social criteria into their financing strategies. Additionally, he emphasized the imperative for the African banking sector to adopt a proactive approach to address the profound changes facing the banking landscape, particularly the emergence of disruptive new technologies and new players such as fintechs, as well as the climate challenges impacting the African continent. Advocating for financial stability Stressing the importance of regional integration, Abdessalem underscored the need to strengthen ties between economic blocs and the commitment of African central banks to financial stability, which he deemed essential to withstand economic shocks and emerging risks, including the rise of cyber threats. He also reiterated the strategic role of digitalization in enhancing financial inclusion in Africa. Indeed, although the banking penetration rate in sub-Saharan Africa remains limited, technological innovations represent a crucial lever to expand access to financial services. The Vice-Governor further highlighted the BCT's adoption of the Pan-African Payment and Settlement System (PAPSS), a key infrastructure for instant and secure cross-border transactions in local currencies. He encouraged Tunisian banking players to fully leverage this mechanism to stimulate intra-African trade and investment. He also emphasized the importance of Open Banking as a fundamental lever to foster greater collaboration between traditional banks and fintechs. Such an approach, he argued, would enable the personalization of financial services and significantly improve the customer experience. Further digitizing banks Tunisian banks face numerous challenges in their digital transition compared to financial institutions worldwide, and particularly in Africa, where the digitization of banking services has seen significant development, said Wassel Berrayana, founder of Proxym Group. Speaking on Express FM, he stated that banks can succeed in getting closer to their customers through digital transformation, highlighting the development of new electronic payment methods, such as BNPL (Buy Now, Pay Later). He stressed the need to adopt a more advanced information system to enable effective digitization of banking services.
