KCB Group and Bank of Kigali have officially launched the Pan-African Payment and Settlement System (PAPSS), a transformative financial infrastructure aimed at enhancing cross-border transactions across Africa. The launch was facilitated by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat.
The introduction of PAPSS was held in Kigali on February 26th by the Bank of Kigali, followed by KCB Bank’s launch in Nairobi on February 27th. This development makes the two banks the first in Rwanda and Kenya to adopt the system.
Seamless and Cost-Effective Transactions
KCB Bank PAPSS integration enables customers to send and receive cross-border payments more efficiently via mobile banking applications and branch networks. The service eliminates the reliance on correspondent banks and third-party currencies, offering businesses and individuals a faster, more affordable, and secure way to conduct transactions across African nations.
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Mike Ogbalu III, CEO of PAPSS, highlighted the benefits of the platform, stating: “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 praised the visionary leadership of KCB Group CEO Paul Russo and Bank of Kigali CEO Dr. Diane Karusisi for spearheading the adoption of PAPSS. He emphasized that the system’s expansion aligns with the long-term vision of connecting the entire African continent.
A Game-Changer for Intra-African Trade
PAPSS was initially launched in 2022 as a pilot project in the West African Monetary Zone (WAMZ). Since then, it has grown to include 15 central banks, over 150 commercial banks, and 14 financial switches. The expansion into Eastern Africa is expected to further strengthen intra-African trade, which currently accounts for only 16% of the continent’s total trade volume.
In a call to action, Mr. Ogbalu III urged other central and commercial banks in Eastern Africa to integrate PAPSS into their financial operations. He noted that the system plays a vital role in achieving the AfCFTA’s goal of creating a unified and prosperous African economy.
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KCB Group CEO Paul Russo highlighted the bank’s commitment to fostering regional trade and financial inclusion. “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.” he stated.
Similarly, Dr. Diane Karusisi, CEO of Bank of Kigali, emphasized the impact of PAPSS on businesses and individuals. “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.”
The Pan-African Payment and Settlement System (PAPSS) is a centralized Financial Market Infrastructure designed to streamline cross-border transactions within Africa. PAPSS, by working closely with Africa’s central banks, provides an efficient, secure, and standardized payment network, enabling commercial banks and licensed payment service providers to connect seamlessly.