Central Bank of Egypt (CBE) Governor Hassan Abdalla participated in the 14th meeting of the Pan-African Payment and Settlement System (PAPSS) Governing Council in Nairobi on Saturday, focusing on expanding the network of participating banks and mitigating cross-border payment risks.
The meeting, held on the sidelines of the annual meetings of the Association of African Central Banks, addressed recent business developments within the PAPSS framework. Discussions centred on strategies to increase the number of participating central and commercial banks while maintaining governance through enhanced internal oversight.
Abdalla joined the PAPSS Governing Council in January 2025. The council serves as the system’s highest supervisory and regulatory authority, comprising 15 central bank governors from participating African nations, alongside representatives from regional organisations such as the African Union and the African Development Bank.
Following close cooperation with PAPSS representatives to study the system’s technical and legal characteristics, the Central Bank of Egypt officially joined the network in November 2024. The CBE adopted a flexible business model allowing Egyptian banks to participate directly, enabling them to fund and execute regional cross-border and mutual transactions without requiring a settlement agent or intermediary to fund the exchanges in US dollars.
The CBE is currently evaluating additional mechanisms and services offered by the regional payment system, including potential integration with the PAPSS Card system and opportunities within the PAPSS Marketplace. The Central Bank of Egypt stated it continues to provide the necessary support to facilitate the participation of Egyptian banks that have expressed interest in joining the network.
Launched by the African Export-Import Bank, PAPSS aims to facilitate cross-border commercial payments and transfers while reducing associated costs and processing times. The system is designed to strengthen historical economic ties and expand mutual trade between Egypt and other African nations. It also seeks to foster financial integration across the continent and alleviate pressure on the supply of international currencies through a net settlement mechanism for mutual transactions among participating states.
