In line with Egypt’s unwavering efforts to enhance regional banking relations and strengthen economic collaboration with African countries, the Central Bank of Egypt (CBE) approved, in November 2024, the agreement to join the Pan-African Payment and Settlement System (PAPSS).
The PAPSS – developed by the African Export-Import Bank (Afreximbank) – facilitates cross-border payments and trade transactions, reducing both costs and processing times. Notably, this is a promising step towards strengthening historical economic ties and expanding bilateral trade between Egypt and fellow African countries.
In this regard, Mr. Rami Aboulnaga, Deputy Governor of the CBE, stated that the signing of the agreement for the CBE’s participation in the new system reflects Egypt’s commitment to enhancing commercial and economic ties with countries worldwide, and with African nations in particular. He also highlighted that this development is the outcome of the continuous communication and collaboration between the CBE and African central banks.
He emphasized that the multiple benefits of PAPSS are poised to incentivize banks operating in Egypt and African banks to join the system and stimulate cross-border financial transactions with one another. The System’s membership encompasses 14 central banks from (Nigeria, Ghana, Liberia, Guinea, Gambia, Sierra Leone, Djibouti, Zimbabwe, Zambia, Kenya, Rwanda, Malawi, Tunisia, and Comoros), alongside over 50 commercial banks. Noteworthy, several banks operating in Egypt have expressed interest and willingness to join PAPSS. Under the agreement, the CBE will oversee the participation of banks operating in Egypt in the System.
This initiative is expected to substantially boost the intra-African trade, strengthen Egypt’s economic ties with African countries, and promote financial integration among African fellows.
Furthermore, it will ease pressure on the demad of foreign currencies through using a net settlement mechanism across all participating countries.
