The Bank of Central African States has formally joined the Pan African Payment and Settlement System, marking a significant development in the evolution of Africa’s financial infrastructure and strengthening efforts to facilitate more efficient cross border trade across the continent.
The development extends the reach of the Pan African Payment and Settlement System into the Central African Economic and Monetary Community, known as CEMAC, whose six member states comprise Cameroon, the Central African Republic, the Republic of the Congo, Gabon, Equatorial Guinea and Chad. As the common central bank for the monetary union, the Bank of Central African States plays a central role in regional monetary policy and financial stability, making its participation a notable milestone in Africa’s wider financial integration agenda.
The Pan African Payment and Settlement System, commonly known as PAPSS, was developed by the African Export Import Bank in collaboration with the African Union and the Secretariat of the African Continental Free Trade Area. The platform enables payments between African countries to be settled instantly in local currencies, reducing dependence on external currencies and correspondent banking arrangements while lowering transaction costs and settlement times for businesses, financial institutions and consumers.
According to information released by the African Export Import Bank, the inclusion of the Bank of Central African States expands the PAPSS network to 28 African countries. The system now links more than 190 commercial banks and financial technology companies through 16 payment switches. Through additional network partnerships, participating institutions are also able to connect with more than 250 financial institutions across the continent.
For the CEMAC region, which has an estimated population exceeding 72 million people, the integration provides an opportunity to strengthen commercial links with other African markets by enabling faster and more efficient payment settlement. The move also supports the broader implementation of the African Continental Free Trade Area, which seeks to increase trade among African economies by addressing both tariff and non tariff barriers, including payment inefficiencies that have historically increased the cost of doing business across borders.
Governor Yvon Sana Bangui of the Bank of Central African States, who also serves as Chair of the Association of African Central Banks, said the decision creates conditions for faster, more affordable and more efficient cross border payments between CEMAC member states and the rest of Africa. He encouraged commercial banks and financial institutions within the monetary union to prepare for participation, noting that financial sector engagement would be essential to maximising the benefits of regional trade integration.
Mike Ogbalu III, Chief Executive Officer of PAPSS, described the development as an important step towards deeper financial integration across Africa. He said the participation of the Bank of Central African States expands payment corridors between Central Africa and other regions of the continent while supporting more efficient trade and economic activity.
The integration also represents an important advance in the continent’s pursuit of greater financial sovereignty. By enabling transactions to be processed and settled within Africa using African currencies, PAPSS seeks to reduce reliance on external settlement systems while improving the speed, accessibility and affordability of cross border payments. These improvements are expected to benefit businesses seeking regional markets, financial institutions expanding cross border services and individuals sending or receiving payments across African countries.
Implementation of the new membership will continue throughout the remainder of 2026. During this period, PAPSS and the Bank of Central African States will work together to integrate financial institutions across the CEMAC region and operationalise payment services for banks, businesses and consumers. The initiative also complements preparations for the planned pilot integration of the Central Bank of West African States later this year, an additional step towards building an interconnected continental payment network.
As African economies continue to pursue closer economic cooperation through the African Continental Free Trade Area, developments such as the expansion of PAPSS highlight the growing emphasis on African led financial infrastructure designed to facilitate trade, improve economic resilience and strengthen connectivity between the continent’s diverse regional markets.
