The Pan African Payment and Settlement System (PAPSS) under Afrieximbank has broadened its footprint to North Africa, with the Banque Centrale de Tunisie (BCT) becoming the thirteenth member of the regional payments platform.
The PAPSS is a cross-border financial infrastructure that allows for payment transactions throughout Africa. Its members comprise six nations from the West African Monetary Zone (WAMZ), three from East Africa and three from Southern Africa.
In keeping with its strategic objectives, BCT also became a participant in the inter-Arab payment and settlement System (BUNA) in 2022. Finally, BCT’s inclusion in PAPSS came by way of the commercial bank settlement model launched at the 2023 Afreximbank Annual Meetings held in Accra, Ghana.
By opting for this model, BCT will conserve its foreign currency reserves and boost the usage of the Tunisian Dinar for cross-border payments across Africa.
The PAPSS model aims to streamline cross-border payments within the continent. It allows a trader in one country to direct their local bank to pay a supplier in another participating country in their own local currency. As a central feature of the African Continental Free Trade Area (AfCFTA), this two-year-old project plays a crucial role in facilitating trade within the region.
