Kindiki urges speedy integration of Pan-African payments system

Algiers, Algeria — 2025-09-05 14:00 EAT. Kenya’s Deputy President urged African states to fast-track adoption of the Pan-African Payment and Settlement System to reduce trade costs and strengthen AfCFTA.

The Latest

• Deputy President Kithure Kindiki, representing President William Ruto at IATF 2025 in Algiers, called on African countries to strengthen PAPSS for seamless real-time currency settlements  .

• He stressed that enabling businesses to trade in local currencies could cut transaction costs and mitigate exchange-rate risks  .

• Status: confirmed as of 2025-09-05 14:00 EAT.

Context in Brief

• PAPSS, launched by Afreximbank under AfCFTA, enables real-time cross-border settlement in local currencies  .

• Intra-African trade remains low—estimated between 14% and 17% of the continent’s total trade—due to high transaction costs and infrastructure gaps  .

Law, Policy, and Process

• Constitution/Acts: AfCFTA agreement enables PAPSS as a financial instrument under AU directives  .

• Mandate: Afreximbank and the AU drive PAPSS roll-out; central banks and commercial banks are participants  .

• Required steps: member states must integrate national systems with PAPSS and connect commercially; central banks oversee regulatory alignment.

Voices and Stakeholders

• Government (DP Kindiki): “We must perfect the Pan African payment system so that we can have real-time settlements using local currencies, as verifiable and seamless as possible,” Deputy President Kithure Kindiki, speaking at IATF2025, 2025-09-05  .

• Experts/Observers: Reuters reports PAPSS has cut transaction costs from up to 30% to about 1%, operational in 15 countries with 150 banks  .

• Local impact: N/A (no community quote available).

Evidence & Data

• Numbers: Intra-Africa trade currently ~14–17%. PAPSS could save Africa ~$5 billion annually in transaction costs  .

• Documents: AfCFTA agreement (2018) codifies PAPSS; PAPSS launched Jan 13 2022  .

• Verification: All quotes and figures drawn from credible media (Standard, Reuters).

Risks and Implications

• Economy: Lower trade costs could unlock intra-African trade and local currency liquidity.

• Governance: Requires strong regulatory coordination among central banks and legal harmonization.

• Regional diplomacy: Accelerated PAPSS uptake signals deeper AfCFTA commitment and African financial sovereignty.

What We Don’t Know

• Which additional countries are preparing to integrate with PAPSS next?

• How many Kenyan banks or businesses are currently connected or are preparing to?

• What timelines are central banks working to for full integration?

• What challenges (technical, regulatory, political) are expected in rollout?

• How will PAPSS interoperability tie in with future Africa Currency Marketplace  ?

Timeline

• 2018-03-21: AfCFTA agreement signed  .

• 2022-01-13: PAPSS officially launched  .

• 2025-03: PAPSS to launch Africa Currency Marketplace later in year  .

• 2025-09-05 14:00 EAT: DP Kindiki calls for PAPSS integration at IATF2025.

What to Watch

• Next action: Which African central banks or governments will pledge integration.

• Deadline: African Currency Marketplace launch within 2025  .

• Signals: Official communiqués from AU, Afreximbank, or national central banks on integration milestones.