Afrieximbank’s Pan African Payment and Settlement System (PAPSS) has expanded into North Africa after Banque Centrale de Tunisie (BCT) joined the regional payments platform as its thirteenth member.
- •PAPSS is a cross-border, financial market infrastructure enabling payment transactions across Africa.
- •Other members include 6 in the West African Monetary Zone (WAMZ) region (Nigeria, Ghana, Guinea, Gambia, Liberia, and Sierra Leone), 3 in East Africa (Kenya, Rwanda, and Djibouti), 3 in Southern Africa (Zimbabwe, Zambia, and Malawi).
- •In 2022, BCT also joined the inter-Arab payment and settlement System (BUNA), in continuation of its commitment to the country’s strategic priorities.
Banque Centrale de Tunisie has joined PAPSS under the commercial bank settlement model that was introduced in 2023 at the Afreximbank Annual Meetings in Accra, Ghana.
By adopting this model, BCT will preserve its foreign currency reserves and promote the use of the Tunisian Dinar for cross-border payments with the rest of Africa.
The PAPSS model is meant to ease cross-border payments on the continent. A trader in one country can instruct their local bank to pay a supplier in another participating country in their local currency. The two year old project is among the central elements of the African Continental Free Trade Area (AfCFTA).
