This move marks a step forward in promoting seamless cross-border payment services and improving financial integration across Africa. PAPSS, a collaboration between the African Export-Import Bank (Afreximbank), the African Union, and the AfCFTA Secretariat, aims to facilitate real-time settlement of intra-African trade and payments in African currencies. By uniting central banks from across the continent, PAPSS aims to address existing challenges in accessing efficient and cost-effective cross-border payment services for African businesses and individuals.
The inclusion of Banque Centrale de Tunisie in PAPSS reflects the bank's commitment to supporting economic growth and development within Tunisia and the African region. This collaboration is expected to enhance payment efficiency, reduce transaction costs, and provide more opportunities for Tunisian businesses and citizens to trade and transact with other African countries.
In the official press release, representatives from Banque Centrale de Tunisie emphasised the country's dedication to regional integration within Africa at an economic and financial level through its participation in PAPSS. They also highlighted the initiative's alignment with Tunisia's strategic priorities, including its efforts to integrate into the African Continental Free Trade Area (AfCFTA).
Banque Centrale de Tunisie's decision to join PAPSS under the commercial bank settlement model underscores its commitment to preserving foreign currency reserves and promoting the use of the Tunisian Dinar for cross-border payments with the rest of Africa. The press release further details that this strategic move could potentially increase the value of Tunisia's currency and reduce reliance on foreign currencies in the future.
With the entry of Banque Centrale de Tunisie into PAPSS, Tunisian commercial banks can now begin the process of connecting to the system. PAPSS is prepared to assist and support Tunisian banks in completing this onboarding process successfully.
The Pan-African Payment and Settlement System (PAPSS) is a centralised Financial Market Infrastructure that enables the efficient flow of money securely across African borders, contributing to financial integration across regions. PAPSS, announced by Afreximbank and the African Union at the Twelfth Extraordinary Summit of the African Union in 2019, serves as an instrument for implementing the African Continental Free Trade Agreement (AfCFTA). Following its official launch in Accra, Ghana, on 13 January 2022, PAPSS has been made available for public use.
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