KCB Group, the largest commercial bank in East Africa, has bec0me the first financial institution in Kenya and the region to begin transactions on the Pan-African Payment and Settlement System (PAPSS).
This initiative will allow KCB customers to benefit from quicker settlements, reduced currency conversion costs, and greater market access across Africa, further cementing the bank’s role in promoting cross-border trade and financial integration.
Developed by Afreximbank, PAPSS streamlines intra-African payments, minimizing dependence on foreign currencies and enhancing regional trade frameworks.
“Great news for businesses! It is now easier to send and receive money across Africa following the launch of the Pan-African Payment and Settlement System (PAPSS) by @KCB Group. Kenyans can now send money across African countries through this new system using the local currency,” said Lee Kinyanjui, Kenyan Cabinet Secretary in the Ministry of Investments, Trade, and Industry.
According to Paul Russo, CEO of KCB Group, the PAPSS platform positions KCB, which operates in seven East African countries, at the forefront of facilitating trade across Africa. He emphasized that the bank remains instrumental in driving the continent’s economic transformation while strengthening its status as a leading financial institution.
“PAPSS aligns with our strategy of supporting economic growth in Kenya and beyond by enabling seamless financial transactions,” said Russo.
Mike Ogbalu, CEO of PAPSS, informed journalists in Nairobi, Kenya, that KCB Bank clients can now send and receive money in their local currency to and from partner banks across Africa almost instantly.
“KCB’s successful boarding of PAPSS is a remarkable achievement that showcases its commitment to enhancing financial connectivity and supporting the implementation of the African Continental Free Trade Area (AfCFTA),” Ogbalu said.
PAPSS currently comprises:
- 15 central banks
- Over 150 commercial banks including 4 of Africa’s largest banks, and
- 14 payment switches across Africa, with ongoing expansion efforts aimed at enhancing the AfCFTA’s role in economic integration.
5 of Africa’s Largest Banks Sign Up to Use the Pan-African Payment and Settlement System (PAPSS)
The financial institutions signed a Memorandum of Understanding (MoU) which will facilitate Ecobank and its subsidiaries in conducting cross-border transactions using the Pan-African…
— BitKE (@BitcoinKE) June 30, 2023
Other notable banks beyond KCB Group include:
- Ecobank (Togo)
- Access Bank (Nigeria)
- UBA Group (Nigeria)
- Standard Bank (South Africa)
PAPSS, a unified payment system under the African Continental Free Trade Area (AfCFTA), utilizes local currencies to address Africa’s foreign exchange shortages and conversion challenges. The continent currently operates with 42 different currencies.
How the Pan-African Payment Settlement System (PAPSS) Works to Enable Instant African Cross-Border Payments https://t.co/E1zewt7dNr @papss_africa @AfCFTA #PAPSS #Africa
— BitKE (@BitcoinKE) January 19, 2022
47 countries have ratified the African Continental Free Trade Area (AfCFTA), which seeks to unify the region into a single market.
AfCFTA | African Countries to Adopt Pan-African Payment and Settlement System (PAPSS) by February 2024
The platform, developed by the African Export-Import Bank (Afreximbank) with the backing of the African Union (AU), allows a trader in a participating country to direct their… pic.twitter.com/dzmRVsSD9c
— BitKE (@BitcoinKE) November 9, 2023
With a potential reach of 1.3 billion people and a combined GDP of $3.4 trillion, the AfCFTA could become the world’s largest free-trade zone by area when fully operational by 2030.
The first shipment under the African Continental Free Trade Area (AfCFTA) took place between Kenya and Ghana in 2022, a consignment of tea from the East African nation.
The AfCFTA Agreement Kicks Off with the First Trade Between Kenya and Ghana – BitcoinKE https://t.co/civ9hkJrqZ
— Italtec Gold & Commodities (@italtecgc) October 13, 2022
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