The Central Bank of Egypt (CBE) has officially joined the Pan-African Payment and Settlement System (PAPSS). This endorsement is poised to enhance regional banking connections and facilitate smoother, more cost-effective cross-border trade with African nations.
Developed by the African Export-Import Bank (Afreximbank), PAPSS is designed to simplify and expedite cross-border payments, significantly reducing transaction costs and processing times. By adopting this system, Egypt aims to deepen its economic ties and trade interactions with fellow African countries, thereby fostering a more integrated continental economy.
Rami Aboulnaga, Deputy Governor of the CBE, highlighted this initiative as a testament to Egypt’s dedication to bolstering both global and African economic partnerships. “Joining PAPSS reflects our commitment to enhancing cross-border financial transactions and collaboration with African central banks,” he remarked. The initiative encourages banks operating within Egypt and throughout Africa to participate in the system, promoting broader financial cooperation.
Currently, PAPSS boasts membership from 14 central banks, including those from economic stalwarts like Nigeria, Ghana, and Kenya, as well as over 50 commercial banks across the continent. The inclusion of Egypt marks a significant expansion of the network, promising to enhance intra-African trade, financial integration, and economic ties.
Experts view Egypt’s participation in PAPSS as a pivotal step towards realizing the African Continental Free Trade Area’s (AfCFTA) goals, which aims to create a unified market across Africa. Dr. Nkosana Moyo, an economist specializing in African markets, noted, “Egypt’s engagement with PAPSS could serve as a catalyst for increased trade efficiency and economic growth across the continent.”
As the CBE oversees the integration of Egyptian banks into PAPSS, this development underscores the country’s strategic position as a gateway to Africa, reinforcing its role in promoting sustainable economic development and financial collaboration across the region.
