Kenyan bank KCB Group and the Rwanda-based Bank of Kigali have joined the Pan-African Payment and Settlement System (PAPSS), which was launched by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat.
Through the launches in Kigali and Nairobi, respectively, the Bank of Kigali and KCB Group became the first in their countries to integrate PAPSS into their operations. With the move, each financial institution looks to underscore its commitment to supporting intra-African trade and the efforts of the AfCFTA.
KCB and Bank of Kigali customers can now 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.
Mike Ogbalu III, CEO of PAPSS, explained the benefits the payment system could offer: “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.
“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.”
Pan-African transactions
Ogbalu also noted that the PAPSS network, which began in 2022, had successfully grown to include 15 central banks, over 150 commercial banks, and 14 switches.
Speaking on the milestone, Paul Russo, CEO of KCB Group, 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, also added: “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.”
