Egypt's Central Bank Governor Hassan Abdallah participated in the 14th meeting of the governors' council of the Pan-African Payment and Settlement System in Nairobi, Kenya. The meeting discussed developments in the system and ways to increase participation from central and commercial banks while maintaining governance through enhanced internal oversight and risk management.
The Pan-African Payment and Settlement System aims to facilitate cross-border payments and settlements, reducing costs and time. The system was launched by the African Export-Import Bank to strengthen economic ties and promote trade among African countries. Egypt's central bank joined the system in November 2024, allowing Egyptian banks to participate directly.
Governor Abdallah joined the council in January 2025, becoming one of 15 members, alongside representatives from regional institutions such as the African Union and the African Development Bank. The council oversees the system, ensuring effective governance and risk management. Egypt's participation in the system is expected to enhance trade and economic cooperation with other African countries.
The Central Bank of Egypt has been working with the Pan-African Payment and Settlement System to study its technical and legal aspects. This collaboration aims to develop a framework for Egyptian banks to participate in the system, enabling them to finance and execute cross-border transactions without intermediaries.
The Egyptian central bank is currently exploring additional services offered by the Pan-African Payment and Settlement System, including integration with the PAPSS Card and PAPSS Marketplace. The bank is providing support to facilitate participation from interested Egyptian banks.
By joining the Pan-African Payment and Settlement System, Egypt aims to reduce reliance on international currencies and promote financial integration within the continent. The system provides a mechanism for settling net transactions between participating countries, easing pressure on foreign currency reserves.
The expanded participation of Egyptian banks in the Pan-African Payment and Settlement System is expected to boost trade and economic cooperation between Egypt and other African countries. The system will also contribute to reducing transaction costs and enhancing the efficiency of cross-border payments.
Key points
- Egypt's central bank is exploring ways to expand participation of Egyptian banks in the Pan-African Payment and Settlement System.
- The system aims to facilitate cross-border payments and settlements, reducing costs and time.
- Egypt's participation in the system is expected to enhance trade and economic cooperation with other African countries.
