The Big Question
What is stopping every African country from signing up for PAPSS (Pan-African Payment and Settlement System)?
The Answer
If you’re building a fintech product, trading across borders, or just sick of the FX yo-yo every time you pay a supplier next door, this question is critical.
Because at its core, PAPSS promises what African businesses have begged for decades: real-time, local-currency payments across the continent, no USD detour required.
But while the idea is solid gold, the rollout? Not so fast. Some countries are all in. Others are still thinking about it. And a few are ghosting the whole thing.
In this post, we’ll get into:
What’s holding back so may countries from signing up for PAPSS (spoiler: it’s not just bureaucracy).
What “regulatory harmonisation” means.
Case studies from Rwanda and Ghana, two countries punching above their regulatory weight.
Why this matters for founders, finance teams, and anyone betting on African trade.
Let’s get into the receipts.
What is PAPSS and Why Should African Businesses Care?
PAPSS is Africa’s answer to Swift, Visa, and clunky USD-based settlements. Launched by Afreximbank in partnership with AfCFTA, it lets you pay another African business in your local currency, and they receive the funds in theirs, instantly.
Yes, instantly. In local currencies. Without intermediaries.
PAPSS slashes:
FX conversion costs.
Payment delays.
The need to route African payments through New York or London.
In other words, it’s the infrastructure Africa’s been waiting for. But infrastructure means nothing if nobody builds on it.
As of June 2025, a few countries have fully integrated their central banks to PAPSS and are actively onboarding banks and fintechs.
Afreximbank wants to get all 54 African Union member states on PAPSS but regulatory harmonization is holding a lot of countries back from joining.
What Does “Regulatory Harmonisation” Actually Mean?
Let’s translate the buzzword.
Regulatory harmonisation means aligning different regulatory frameworks across countries for seamless transactions through PAPSS. It looks like this:
Your central bank plays nice with others.
Your KYC/AML policies don’t break international law.
You allow some FX flexibility without tanking your economy.
You’ve got the legal plumbing for instant settlement.
Harmonization reduces risks, minimizes costs, and promotes financial integration within the continent.
Case Studies: How Ghana and Rwanda Got It Done
Ghana: The Overachiever
Ghana didn’t just show up. It led the charge.
The Bank of Ghana integrated early, supported onboarding of commercial banks, and issued clear guidance for fintechs.
They:
Built real-time links between GHIPSS and PAPSS.
Created policy bridges to allow FX clearing via PAPSS.
Encouraged private-sector participation from Day 1.
Result? Ghanaian businesses can pay and get paid across borders in seconds without touching a dollar.
Rwanda: The Startup Whisperer
Rwanda joined PAPSS in 2024, but their strategy started years before with smart sandbox regulations and central bank-facilitated testing.
The National Bank of Rwanda:
Built a regulatory sandbox for PAPSS use cases.
Digitised KYC and compliance checks across banks.
Onboarded major banks (like Bank of Kigali) early to run trials
Lesson: If you’ve got the tech stack and the policy brains, small countries can move big.
What’s Stopping the Rest from Signing Up?
So what’s keeping the rest of the continent from jumping on the PAPSS express?
1. Regulatory Mismatches
Some countries are still running on strict capital controls. Their central banks treat foreign currency like fine china: look, don’t touch. That’s not ideal for real-time, cross-currency settlement.
Example: South Africa’s FX restrictions make it hard to commit despite having the technical capacity.
2. FX Liquidity Anxiety
PAPSS needs market makers. That usually means central banks need enough reserves to convert currencies quickly. In countries with shallow FX markets or volatile currencies, there’s (understandable) hesitation.
No one wants to settle in local currency today and realise it’s worth less tomorrow.
3. Legacy Payment Systems
If your interbank transfer system still runs on 2001 code… PAPSS integration isn’t plug-and-play. Many countries need technical upgrades before they can even consider onboarding.
4. Political Distraction or Bureaucracy Fatigue
Let’s be real: not every country is prioritising regional payment integration. Between elections, inflation, and IMF talks, PAPSS isn’t always top of the to-do list.
What Needs to Happen to Unblock Progress?
TL;DR? Incentives, templates, and pressure.
Afreximbank Needs to Sweeten the Deal
They’ve already created a Settlement Guarantee Fund. But more needs to be done especially for:
Low-FX countries.
Fragile economies.
Overstretched central banks.
Grants, integration support, or co-financed upgrades would go a long way.
Clear, Copy-Pasteable Regulatory Templates
If every country has to reinvent the wheel, we’re never getting out of the parking lot. AfCFTA and AU bodies should publish:
Standard operating models
Sample legislation
Technical integration guides
Give countries the IKEA manual, not the raw wood.
The Private Sector Needs to Speak Up
If regional banks, fintechs, and traders demand PAPSS support, regulators will move faster. The more real money is flowing through informal channels or third-party workarounds, the more obvious the business case becomes.
Why This Should Be on Every Fintech Founder’s Radar
If you’re building:
A cross-border wallet
A multi-currency checkout
A remittance app
Or any product that touches intra-African trade
…then PAPSS is your future. Even if your country hasn’t joined yet.
Start preparing now:
Design your stack to be API-agnostic
Build in currency flexibility
Advocate for PAPSS adoption to your regulator
Your competitors in Ghana and Rwanda already are.
Final Word: The Future is Local-Currency, Real-Time, and Pan-African
Africa doesn’t need another decade of currency conversions and correspondent bank fees. The infrastructure is here. The will is growing. Now it’s a matter of political courage and regulatory coordination.
If Ghana and Rwanda can do it, so can Kenya, South Africa, and the rest.
PAPSS is a quiet revolution. And the smart money is already moving.
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