Africa’s ambition to deepen economic integration has taken another step forward with Algeria officially joining the Pan-African Payment and Settlement System (PAPSS). The move, led by the Bank of Algeria, makes the country the 18th member of the growing PAPSS network and marks a milestone in North Africa’s financial integration journey. Established by the African Export-Import Bank (Afreximbank) in partnership with the African Union Commission and the African Continental Free Trade Area Secretariat, PAPSS is designed to streamline cross-border payments across the continent, reduce costs and enhance regulatory cooperation in support of the AfCFTA’s vision.
The accession of Algeria comes at a symbolic and strategic moment. In just weeks, the country will host the Intra-African Trade Fair 2025 in Algiers from 4 to 10 September, an event expected to attract more than 35,000 participants from 140 countries. The fair, itself a flagship initiative of Afreximbank, will serve as a global showcase for Africa’s trade and investment opportunities. Algeria’s membership in PAPSS just ahead of this major gathering underscores the country’s intent to position itself at the heart of Africa’s economic transformation and to demonstrate a strong commitment to the principles of the AfCFTA.
Mike Ogbalu III, Chief Executive Officer of PAPSS, called Algeria’s membership a landmark moment. He emphasized that the inclusion of the Bank of Algeria strengthens PAPSS’s presence in North Africa and confirms growing confidence in the system as the engine of Africa’s payment transformation. According to Ogbalu, PAPSS has already reduced cross-border transaction costs among participating countries, enabling savings of up to 27 percent for end users while driving remarkable transaction growth for banks, some of which have experienced volume surges of more than 1000 percent thanks to digital channels integration. The broader impact has been to make African payments faster, more affordable and more accessible, which in turn stimulates economic growth and opens new opportunities for businesses and communities across the continent.
For Algeria, the benefits are equally significant. Mohamed Benbahane, Deputy Governor of the Bank of Algeria, noted that joining PAPSS aligns with the country’s commitment to accelerating African economic integration. He described the membership as an essential lever for improving payment efficiency and facilitating intra-African trade, while strengthening Algeria’s role in the African financial ecosystem and supporting sustainable development. This step positions Algeria not only as a participant but as an active contributor to the future of African financial cooperation.
Since its official launch in Accra, Ghana, in January 2022, PAPSS has made remarkable strides in expanding its reach and building trust across the continent. Initially rolled out in West Africa, the system has gained significant traction in North Africa, where Tunisia, Egypt, Morocco and now Algeria have joined. The network now connects 18 countries across four regions, more than 150 commercial banks and 14 payment switches. This growth illustrates the system’s increasing relevance and the shared recognition among African nations of the need for an efficient, secure and centralized financial market infrastructure.
The story of PAPSS is closely tied to the wider goals of the AfCFTA. First adopted by African leaders at the Twelfth Extraordinary Summit of the African Union in Niamey in 2019, PAPSS was identified as a key instrument for implementing the free trade agreement. The African Union later mandated Afreximbank and the AfCFTA Secretariat to complete the system’s rollout and in 2022 it became publicly available. By enabling cross-border payments in local currencies, PAPSS minimizes the reliance on third-party currencies, reduces settlement risks and ensures that money circulates more efficiently within Africa. The benefits go beyond banking; they extend to small businesses, entrepreneurs and ordinary citizens who stand to gain from lower costs and faster access to trade opportunities.
The potential impact of Algeria’s entry into PAPSS is far-reaching. As the largest country in Africa by landmass with a diversified economy, Algeria can act as a gateway for financial flows between North Africa and other parts of the continent. Its integration into PAPSS comes at a time when intra-African trade is steadily growing but still faces high transaction costs and operational inefficiencies. By plugging into a centralized system, Algeria can offer its businesses greater access to African markets, encourage investment partnerships and reduce barriers that have long hindered trade expansion.
At the same time, PAPSS’s ability to foster collaboration among African central banks and commercial financial institutions ensures that the system will continue to evolve as a pillar of continental integration. With each new member, the network becomes more robust, creating a multiplier effect where more countries, banks and businesses can benefit from faster settlements and cost savings. The long-term vision is to create an integrated African financial space that can support the full realization of the AfCFTA’s promise of a unified market of 1.3 billion people with a combined GDP of over three trillion dollars.
As Algeria prepares to welcome global delegations to the Intra-African Trade Fair in September, its decision to join PAPSS sends a strong signal of readiness and commitment. It shows that the country sees financial integration not just as an economic tool but as a strategic priority for its future. By doing so, Algeria reinforces the shared belief across the continent that deeper financial cooperation is essential to achieving inclusive growth, building resilient economies and ensuring that Africa takes its place as a competitive player in the global economy.
With Algeria’s accession, PAPSS continues to grow from a vision into a reality, weaving together diverse financial systems into one platform and demonstrating what is possible when African nations work collectively. The momentum is clear and the promise is powerful: a continent where payments flow seamlessly across borders, where businesses can thrive without unnecessary barriers and where integration drives prosperity for all.
