Ethiopia has joined the Pan-African Payment and Settlement System (PAPSS), a move intended to enhance cross-border payment capabilities across the continent. The decision comes as financial institutions in Ethiopia prepare to implement the system, which is designed to streamline and secure international transactions.
PAPSS, launched in 2021, allows participating countries to process payments in local currencies, reducing reliance on traditional banking systems. Ethiopia's participation is expected to increase efficiency for businesses and individuals engaging in international trade. The system is managed by the African Union’s African Payment and Settlement System (APSS) and is supported by the African Development Bank.
This development follows growing efforts by African nations to create a unified financial infrastructure. Ethiopia's entry into PAPSS aligns with broader regional goals to improve financial inclusion and reduce transaction costs. The implementation timeline will depend on the readiness of local banks to adopt the system. The initiative is part of a larger push to modernize financial services in Africa.
