Algeria Joins PAPSS, Expanding Africa’s Cross-Border Payment Network to 18 Countries

Algeria has officially joined the Pan-African Payment and Settlement System (PAPSS), becoming the 18th country to connect to the continent’s flagship financial integration platform.

The move marks a significant step for the Bank of Algeria and underscores the country’s ambition to play a leading role in shaping Africa’s economic future.

Launched by Afreximbank in partnership with the African Union Commission, PAPSS provides a centralized system for secure, instant, and low-cost money transfers between African countries.

By cutting reliance on foreign currencies for trade settlements, the platform is designed to accelerate the African Continental Free Trade Area (AfCFTA) and reduce the high costs that have long hindered cross-border transactions.

For Algeria, the timing is strategic. As the country prepares to host the Intra-African Trade Fair 2025 (IATF 2025) in Algiers from September 4 to 10, joining PAPSS signals its readiness to expand business opportunities across the continent.

Mohammed Benbahane, deputy governor of the Bank of Algeria, said the membership would “improve payment efficiency, facilitate intra-African trade, and strengthen Algeria’s role in the continent’s financial ecosystem.”

PAPSS has already shown tangible results. According to CEO Mike Ogbalu III, the system has slashed intra-African transaction costs by up to 27%, while enabling banks to grow digital transaction volumes by more than 1,000%.

“We are making African payments faster, more affordable, and more accessible, catalyzing growth and unlocking opportunities for businesses and communities across the continent,” Ogbalu noted.

Closing the Trade Gap

The urgency behind PAPSS is underscored by Africa’s trade statistics. Currently, intra-African trade accounts for just 12–15% of the continent’s total trade volume. This is a stark contrast to both Europe and Asia, where regional trade represents more than 60% of total commerce in both regions. This disparity highlights the untapped potential of African markets and the critical need for financial infrastructure that makes trade simpler and cheaper.

By connecting central banks directly and settling transactions multilaterally, PAPSS is laying the infrastructure to close that gap.

PAPSS not only cuts costs but also reduces dependence on the U.S. dollar and other foreign currencies. This shift is particularly important at a time when global exchange rate volatility has created new risks for emerging markets.

For the entire continent of Africa, trade experts view PAPSS as a crucial lever for the AfCFTA, which aims to create a single African market of 1.3 billion people. And Algeria’s accession strengthens the momentum of a system that is fast becoming the backbone of regional integration.

For countries like Algeria, it’s also a way to reinforce monetary sovereignty while expanding regional economic opportunities. For businesses in the country, the benefits could be transformative: easier access to African markets, reduced dependence on external financial channels, and a stronger foothold in the continent’s emerging single market.