Ethiopia Joins Pan-African Payments System

Ethiopia’s central bank has joined the Pan-African Payment and Settlement System (PAPSS), moving the country nearer to full integration with the continent’s payments network. The platform lets parties settle cross-border trades directly in local currencies, reducing reliance on the US dollar and the foreign correspondent banks that once handled such transfers, which lowers costs. Central bank governor Eyob Tekalign described the move as an important step in modernizing Ethiopia’s financial system and strengthening economic connections across the continent. Launched in January 2022 with 10 commercial banks, PAPSS has expanded to more than 15 countries, including Nigeria, Zambia, Malawi, Kenya, and Tunisia, and has more than 150 banks in its network. Notably, South African banks remain outside the network. The initiative supports broader African trade integration, including the African Continental Free Trade Area, by addressing payment barriers that can complicate transactions between businesses in different countries.