Morocco Joins PAPSS to Advance Africa’s Cross-Border Payment Integration

Launched to support the AfCFTA’s goals, PAPSS provides a centralized infrastructure that enables real-time clearing and settlement of intra-African trade payments.

In a major step toward Africa’s financial integration, the Pan-African Payment and Settlement System (PAPSS) has officially welcomed the Kingdom of Morocco into its expanding network. The formal signing of the PAPSS membership agreement by Bank Al-Maghrib, Morocco’s central bank, marks the country as the 17th African nation to join the system. This move not only reinforces Morocco’s commitment to the African Continental Free Trade Area (AfCFTA) but also strengthens the broader vision of a seamless intra-African payments landscape.

Developed by the African Export-Import Bank (Afreximbank) in collaboration with the African Union (AU) and the AfCFTA Secretariat, PAPSS is designed to simplify, secure, and accelerate cross-border transactions in local currencies. Morocco’s accession adds critical momentum to Africa’s journey toward becoming a truly unified and economically integrated continent.

---

PAPSS: Revolutionizing Cross-Border Payments in Africa

Launched to support the AfCFTA’s goals, PAPSS provides a centralized infrastructure that enables real-time clearing and settlement of intra-African trade payments. The system addresses long-standing challenges such as:

• High transaction costs

• Foreign currency dependency

• Payment delays and inefficiencies

• Complex currency conversions

By eliminating the need to route payments through external financial systems or use third-party hard currencies like the U.S. dollar or euro, PAPSS empowers African businesses and financial institutions to transact directly in their national currencies.

According to Mike Ogbalu III, CEO of PAPSS, the addition of Morocco marks a major victory:

“Morocco’s entry as our seventeenth central bank member demonstrates the growing momentum and trust in PAPSS as the solution for Africa’s cross-border payment challenges.”

---

Strategic Importance of Morocco’s Entry

Morocco is one of Africa’s most dynamic economies and serves as a gateway between North Africa and Europe. Its integration into PAPSS is significant for several reasons:

• Geopolitical Bridging: Morocco’s participation enhances connectivity between North and Sub-Saharan Africa, improving trade and financial links across diverse regions.

• AfCFTA Commitment: As a strong proponent of continental trade, Morocco’s inclusion bolsters the AfCFTA’s operational goals and demonstrates increasing political and economic alignment across Africa.

• Bank Al-Maghrib’s Role: As a central bank with a solid regulatory and monetary track record, Bank Al-Maghrib brings credibility, institutional strength, and regional influence to the PAPSS network.

---

Expanding Reach: PAPSS Network at a Glance

With Morocco on board, PAPSS now comprises:

• 17 African countries

• Over 150 commercial banks

• 14 financial switches and clearing systems

This infrastructure enables a vast ecosystem of banks, fintechs, remittance providers, and businesses to interact more efficiently across borders. PAPSS is actively onboarding additional countries and private sector partners to broaden access and usage.

The system's scalability ensures that even micro, small, and medium-sized enterprises (MSMEs)—often the backbone of African economies—can benefit from lower transaction costs and faster payments, thereby fueling inclusive economic growth.

---

Implications for Intra-African Trade and Investment

One of the primary barriers to African intra-trade has been the fragmented financial systems and the heavy reliance on external correspondent banks. PAPSS is a game-changer in this context. Its local-currency clearing framework supports:

• Trade settlement between African exporters and importers

• Investment transfers and capital flows

• Remittances and diaspora-linked financial services

• E-commerce and digital trade platforms

With transaction costs significantly reduced and settlement times cut from days to seconds, African enterprises now have the tools to scale operations across borders with greater confidence and efficiency.

---

Future Outlook: Toward Full Continental Coverage

PAPSS’s integration roadmap aims for universal adoption by all 55 African Union member states. Ongoing discussions are underway with additional central banks, financial authorities, and private institutions. The system is also being optimized to support:

• Real-time gross settlement (RTGS)

• Mobile money interoperability

• AML/CFT compliance frameworks

• Data security and digital ID integration

These developments will ensure that PAPSS remains at the forefront of Africa’s digital financial revolution, aligning with the AU’s Agenda 2063 and the UN’s Sustainable Development Goals.

---

A Defining Moment for Pan-African Financial Integration

Morocco’s entry into PAPSS is more than symbolic—it is a powerful statement of unity, ambition, and progress. As Africa seeks to forge a self-sufficient and interconnected economy, platforms like PAPSS are essential to unlocking trade, investment, and innovation. The growing momentum behind this payment infrastructure signals a future where African countries trade with each other on their own terms, using their own currencies, backed by African financial institutions.