Policy Briefing 300 - PAPSS – What Is It Good For?

In October 2023, a multi-sector focus group, hosted by Tutwa Consulting Group under a USAID-funded Africa Trade and Investment Program, explored the challenges and opportunities related to interoperability in cross-border payments, particularly within the context of PAPSS.4 Overall, the programme underscored the importance of harmonised and standardised payment systems across the continent to bene. [...] Led by the African Export and Import Bank (Afreximbank) and supported by the AfCFTA Secretariat, PAPSS is expected to boost intra-African trade through the transformation and facilitation of payments, clearing and settlement for cross-border transactions.5 PAPSS launched its pilot phase in the West African Monetary Zone (WAMZ) in 2022 and is expected to be fully operational by 2025. [...] Notably, a memorandum of understanding with the Arab Monetary Fund (AMF) paves the way for cooperation between PAPSS and the AMF’s Banu payment system.28 Additionally, all 11 central banks from the Caribbean Community have adopted PAPSS.29 Challenges inhibiting the practical use of PAPSS Despite the commitments made by entities on the continent and abroad, several factors are limiting the widespre. [...] The following recommendations are made to address the challenges that impede adoption of the PAPSS: ∙ To ensure the successful adoption and effectiveness of PAPSS, central banks, Afreximbank and the AfCFTA Secretariat should prioritise fostering transparent collaboration and strong advocacy. [...] Copyright is vested in the South African Institute of International Affairs and the authors, and no part may be reproduced in whole or in part without the express permission, in writing, of the publisher.