PAPSS: What is it good for? Probably plenty

The Pan-African Payment and Settlement System (PAPSS) is a financial market infrastructure designed to enable instant cross-border payments across Africa using local currencies, reducing reliance on foreign currencies like the US dollar and Euro. While supported by the AU and AfCFTA, the system faces significant hurdles, including low awareness—with 39% of business leaders unaware of it—and fragmented regulatory frameworks. Despite these challenges, as of May 2024, 13 African central banks, over 115 commercial banks, and 10 payment switches have connected to the system. The report recommends harmonizing regulations, investing in digital infrastructure, and improving data transparency to unlock the system's potential for economic integration.

• PAPSS aims to increase intra-African trade by allowing payments in local currencies, which reduces the need for central and commercial banks to hold reserves of foreign currencies such as US dollars and Euros.
• The system is supported by high-level institutional frameworks, including the AfCFTA Agreement and the African Union, and has established a strategic partnership with the Association of African Stock Exchanges (ASEA) to transform cross-border stock exchange payments.
• As of May 2024, the system has seen adoption by 13 African central banks, more than 115 commercial banks, and 10 payment switches, with another 115 commercial banks in the pipeline for connection.
• PAPSS has expanded its reach beyond Africa, with all 11 central banks from the Caribbean Community adopting the system and a memorandum of understanding signed with the Arab Monetary Fund (AMF) to cooperate with the Banu payment system.
• Low awareness is a major barrier to adoption; the PAFTRAC Africa CEO Trade Survey Report 2023 indicates that 39% of business leaders are unaware of PAPSS.
• Practical implementation is hindered by fragmented regulatory frameworks, varying data privacy laws, and disparities in digital infrastructure, particularly in areas with low internet penetration and technological literacy.
• The pilot phase in the West African Monetary Zone (WAMZ), involving Nigeria, the Gambia, Sierra Leone, Liberia, Ghana, and Guinea, faced criticism for a premature launch and a lack of a functioning system demo.

APA

South African Institute of International Affairs (2024). PAPSS: What is it good for? Probably plenty. https://saiia.org.za/research/papss-what-is-it-good-for-probably-plenty/

Chicago

South African Institute of International Affairs. PAPSS: What is it good for? Probably plenty. 2024. https://saiia.org.za/research/papss-what-is-it-good-for-probably-plenty/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=PAPSS: What is it good for? Probably plenty |date=5 November 2024 |url=https://saiia.org.za/research/papss-what-is-it-good-for-probably-plenty/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2024papss, author = {{South African Institute of International Affairs}}, title = {{PAPSS: What is it good for? Probably plenty}}, institution = {South African Institute of International Affairs}, year = {2024}, month = nov, url = {https://saiia.org.za/research/papss-what-is-it-good-for-probably-plenty/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }