Tunisia’s Central Bank Joins Pan African Payment and Settlement System (PAPSS)

The Pan African Payment and Settlement System (PAPSS) proudly announces the entry of Banque Centrale de Tunisie (BCT) as its thirteenth Central Bank member. This development reinforces PAPSS’s commitment to facilitating seamless cross-border payment services and enhancing financial integration across the African continent.

PAPSS, a collaboration between the African Export-Import Bank (Afreximbank), the African Union, and the AfCFTA Secretariat, enables real-time settlement of intra-African trade and payments in African currencies. By bringing together central banks from across Africa, PAPSS aims to address the challenges faced by African businesses and individuals in accessing efficient and cost-effective cross-border payment services.

Banque Centrale de Tunisie’s membership in PAPSS signifies the bank’s dedication to fostering economic growth and development within Tunisia and the African region. This collaboration will provide Tunisian businesses and citizens with enhanced payment efficiency, reduced transaction costs, and increased opportunities for trade and payment with other African countries.

Also Read: Afreximbank to boost intra-African trade financing to $40bn by 2026

H.E Mr. Marouane El Abassi, Governor of Banque Centrale de Tunisie, highlighted the country’s commitment to regional integration within Africa at an economic and financial level. He emphasised the initiative’s support for Tunisia’s efforts to integrate into the AfCFTA, demonstrating the country’s strategic priorities.

Moreover, Mr. El Abassi encouraged banks and the Post Office to join PAPSS as an efficient and cost-effective alternative mechanism to support Tunisian economic operators in transactions across Africa. He stressed the importance of seizing new commercial opportunities and expanding Tunisia’s presence in the African market.

Mrs. Ben Rejeb, Minister of Trade & Export Development, emphasised the significance of joining a platform that facilitates integration into the formal sector, enhances intra-African exports, and reduces transaction costs and processing times.

Dr. George Elombi, Executive Vice President of Afreximbank, expressed gratitude to Banque Centrale de Tunisie for their decision to join PAPSS, emphasising its role in achieving shared goals and driving the development of the continent.

Mr. Mike Ogbalu III, CEO of PAPSS, welcomed Banque Centrale de Tunisie as the first Central Bank in North Africa to join the network. He highlighted the transformative role of PAPSS in simplifying cross-border payments on the continent and commended the commitment of central banks in facilitating trade and investment flows within Africa.

Banque Centrale de Tunisie has opted to join PAPSS under the commercial bank settlement model, preserving its foreign currency reserves and promoting the use of the Tunisian Dinar for cross-border payments with Africa. This strategic move aims to enhance the value of the Tunisian currency and reduce reliance on foreign currencies.

With the inclusion of Banque Centrale de Tunisie, Tunisian commercial banks can commence their onboarding process onto the PAPSS system, with support from PAPSS experts.

Launched two years ago, PAPSS has steadily expanded its footprint across Africa, now covering four regions and including 13 central banks. The platform is expected to attract more central banks throughout the current year, further contributing to financial integration and economic development across the continent.

About PAPSS:

The Pan-African Payment and Settlement System (PAPSS) is a centralised Financial Market Infrastructure that facilitates the efficient flow of money securely across African borders. PAPSS collaborates with Africa’s central banks to provide payment and settlement services, enabling commercial banks and licensed payment service providers across the region to connect as participants. PAPSS was first announced by Afreximbank and the African Union at the Twelfth Extraordinary Summit of the African Union in 2019 and officially launched in Accra, Ghana, in 2022, making it available for public use.

Read more
Source: Afreximbank