PAPSS Revolutionizes Africa's Cross-Border Payments with $5 Billion Cost Savings

A quiet revolution is underway in Africa, and this time it's about payments. The Pan-African Payment and Settlement System (PAPSS) is expanding across the continent, enabling banks and businesses to conduct cross-border transactions in local currencies without converting to dollars or euros.

The system, launched in 2022 by Afreximbank in collaboration with the African Union and the African Continental Free Trade Area (AfCFTA Secretariat), aims to reduce costs, speed up transactions, and increase financial autonomy for the continent.

The Bank of Central African States (BEAC) officially joined PAPSS in July 2026, connecting an entire monetary zone to the pan-African network. This move is seen as pivotal because BEAC serves six countries: Cameroon, Congo, Gabon, Equatorial Guinea, the Central African Republic, and Chad.

The integration of BEAC into PAPSS has significant implications for intra-African trade. According to estimates by the United Nations Economic Commission for Africa (UNECA), once the system is fully operational, it could reduce currency conversion costs in Africa by up to $5 billion annually.