Kenya’s KCB Group and Rwanda’s Bank of Kigali are the first banks to integrate into the Pan-African Payment and Settlement System (PAPSS). Launched on February 26 and 27 respectively, this integration enhances cross-border transactions by removing the need for third-party currencies. PAPSS, established with the support of key regional entities, aims to streamline financial transactions and foster economic integration within Africa.
The KCB Group from Kenya and the Bank of Kigali from Rwanda have successfully integrated into the Pan-African Payment and Settlement System (PAPSS) as the first banks in their nations. This advancement is poised to significantly enhance intra-African trade and strengthen financial connectivity across the continent.
PAPSS, a system conceived by Afreximbank, the African Union Commission, and the AfCFTA Secretariat, eliminates the necessity for third-party currencies and correspondent banking. This innovation leads to faster, more cost-effective, and secure cross-border transactions, revolutionizing Africa’s financial landscape.
Bank of Kigali initiated its PAPSS integration on February 26 in Kigali, swiftly followed by KCB Group on February 27 in Nairobi. This enables customers to send and receive payments across Africa through various mobile apps and branch networks, enhancing accessibility and efficiency.
Mike Ogbalu III, CEO of PAPSS, commented on the transformation: “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, expressed his company’s commitment: “We want to play a bigger role in catalyzing trade and payments in Africa, leveraging our digital capabilities and regional footprint.” Likewise, Dr. Diane Karusisi, CEO of Bank of Kigali, stated: “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 phase in 2022, PAPSS has grown to encompass 15 central banks, over 150 commercial banks, and 14 payment switches. With only 16% of Africa’s total trade taking place within the continent, PAPSS is geared toward streamlining financial transactions and accelerating economic integration throughout Africa.
The integration of KCB Group and Bank of Kigali into the Pan-African Payment and Settlement System marks a significant advancement in financial transactions within Africa. As PAPSS expands, it is set to enhance trade connectivity, making cross-border payments more efficient while promoting economic growth on the continent. Such initiatives are vital for increasing intra-African trade and creating opportunities for small and medium-sized enterprises to thrive.
Original Source: techlabari.com
