KCB Group and Bank of Kigali Integrate into PAPSS to Enhance African Trade

KCB Group and Bank of Kigali are the first banks in Kenya and Rwanda to integrate PAPSS, streamlining cross-border transactions to boost trade and financial connectivity in Africa. The system, developed by Afreximbank, the AUC, and the AfCFTA Secretariat, aims to facilitate economic integration and enhance market access for SMEs across the continent.

Kenya’s KCB Group and Rwanda’s Bank of Kigali have become pioneers by integrating the Pan-African Payment and Settlement System (PAPSS), enhancing intra-African trade and improving financial connectivity. This endeavor was initiated to foster economic ties among African nations without relying on third-party currencies or correspondent banks, thereby facilitating swifter, cost-effective, and safer cross-border transactions.

The introduction of PAPSS occurred recently, with Bank of Kigali launching the system on February 26 in Kigali, followed by KCB Group’s launch on February 27 in Nairobi. This integration allows customers to send and receive payments across Africa seamlessly via mobile applications and their branch networks.

Leaders from both banks have expressed enthusiasm regarding this development. Mike Ogbalu III, CEO of PAPSS, emphasized that this change opens new pathways for trade and investment, ultimately benefiting African SMEs and local economies. Paul Russo, CEO of KCB Group, noted their commitment to enhancing trade and payment facilitation in Africa by utilizing their digital strengths. Dr. Diane Karusisi, CEO of Bank of Kigali, highlighted the benefits for Rwandan entrepreneurs, who can now receive payments instantly in local currency or USD from any member country.

Since its pilot launch in 2022, PAPSS has witnessed significant growth, encompassing 15 central banks, over 150 commercial banks, and 14 payment switches. Despite only 16% of Africa’s total trade occurring within the continent, PAPSS aims to improve financial transactions and stimulate economic integration across Africa.

The integration of PAPSS by KCB Group and Bank of Kigali marks a significant milestone in enhancing intra-African trade and financial connectivity. By simplifying cross-border transactions, PAPSS seeks to empower African SMEs and promote economic collaboration among nations, addressing the current limitations in trade within the continent.

Original Source: techlabari.com