The Bank of Algeria has joined the Pan-African Payment and Settlement System (PAPSS), a system introduced by the African Export-Import Bank (Afreximbank) in collaboration with the African Union Commission (AUC) and the African Continental Free Trade Area (AfCFTA) Secretariat.

Enhancing Presence Across Africa

This move places Algeria as the eighteenth country to benefit from PAPSS, which has expanded its footprint since its introduction in West Africa in 2022. The system is now gaining momentum in North African countries such as Tunisia, Egypt, and Morocco.

PAPSS was initially announced by Afreximbank and the African Union back in 2019. It functions as a centralised financial market infrastructure aimed at facilitating efficient cross-border transactions across Africa. Currently, PAPSS connects 18 countries from four regions, along with over 150 commercial banks and 14 switches.

Boosting Economic Interactions

Africa’s growing confidence in the system is reflected in its continued expansion. Since joining, PAPSS has helped reduce intra-African cross-border transaction costs by up to 27% for users while boosting transaction volumes through digital integrations.

The Bank of Algeria highlighted that membership in PAPSS will help optimise payment efficiency and facilitate intra-African trade, thereby advancing the country’s role within the African financial ecosystem and supporting regional economic development.

Resilience in Africa’s Financial Sector

In spite of global economic challenges, Africa’s financial sector is expected to remain resilient. Recent data indicates that despite these headwinds, Africa will maintain strong growth, driven by rising consumer demand and improved governance. The adoption of fintech solutions is also a key trend, with markets increasingly embracing technology for enhanced financial inclusion in underserved communities.