Kenya and Rwanda Banks Embrace Pan-African Payment System to Enhance Trade

KCB Group of Kenya and Bank of Kigali of Rwanda have integrated the Pan-African Payment and Settlement System (PAPSS), enhancing intra-African trade and financial connectivity. PAPSS simplifies cross-border transactions and has seen significant growth since its pilot launch in 2022. Stakeholders express excitement over its potential to boost the economy and support smaller businesses throughout Africa.

KCB Group of Kenya and Bank of Kigali of Rwanda have become the first financial institutions in their nations to adopt the Pan-African Payment and Settlement System (PAPSS). This initiative is expected to enhance intra-African trade and financial connectivity significantly.

The PAPSS, a platform established by Afreximbank, the African Union Commission, and the AfCFTA Secretariat, offers several advantages by removing the necessity for third-party currencies and correspondent banks. This development allows for quicker, more economical, and secure cross-border transactions.

The Bank of Kigali initiated the launch of PAPSS on February 26 in Kigali, swiftly followed by KCB Group on February 27 in Nairobi. With this integration, customers can now efficiently transfer and receive payments across Africa using mobile applications and branch networks.

As stated by Mike Ogbalu III, CEO of PAPSS, “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, emphasized their commitment by expressing, “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, remarked, “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 launch in 2022, PAPSS has progressively developed, now integrating with 15 central banks, over 150 commercial banks, and 14 payment switches. With only 16% of Africa’s total trade occurring within the continent, PAPSS seeks to streamline financial transactions and enhance economic integration across Africa.

The integration of the Pan-African Payment and Settlement System (PAPSS) by KCB Group and Bank of Kigali marks a significant advance in promoting intra-African trade and financial connectivity. By eliminating the complexities of third-party currencies, this system aims to facilitate faster and more secure transactions, thus supporting economic integration across the continent. As various stakeholders express optimism about the potential benefits for trade and investment, the movement could yield considerable advantages for African businesses.

Original Source: techlabari.com