On 15 October 2026, the National Bank of Ethiopia announced that it is joining the Pan-African Payment and Settlement System (PAPSS), the infrastructure launched in 2022 by Afreximbank with the African Union and the African Continental Free Trade Area (AfCFTA) Secretariat. After the Bank of Central African States (BEAC) in July, it is the second major central bank to join this year.
What PAPSS does
PAPSS processes instant cross-border payments between African countries: the payer pays in its local currency and the payee is credited in its own, without going through a third currency such as the dollar or the euro. As of 11 September 2026, according to Afreximbank, the network covers more than 30 countries and connects 24 national and regional central banks, more than 200 commercial banks and payment service providers, and 16 national switches. The operator reports cost savings of 92 to 95% per transaction and up to an 80% reduction in foreign currency needs.
Ethiopia’s accession
The announcement was made in Addis Ababa, on the sidelines of the Ethiopia Finance Forum, by the Governor of the National Bank of Ethiopia, Eyob Tekalign, and PAPSS Chief Executive Mike Ogbalu III. No timetable has been published for connecting Ethiopian banks. Addis Ababa will host the PAPSS COWRY conference on 26 and 27 November 2026, co-organised with the central bank.
Where CEMAC and WAEMU stand
BEAC joined PAPSS on 9 July 2026; CEMAC banks (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, Chad) are due to be connected by the end of 2026. A pilot phase with the Central Bank of West African States (BCEAO) is planned for 2026.
Three points to check
- The payment route changes, not the exchange rules. Foreign exchange regulations still apply: Regulation No. 02/18/CEMAC/UMAC/CM in CEMAC, Regulation No. 09/2010/CM/UEMOA in WAEMU, national rules elsewhere, with their documentation requirements.
- A central bank joining does not mean your bank is connected. Before relying on PAPSS for a payment, check that each party’s bank is actually live on the network.
- The contract should say so. Payment currency, settlement route and the allocation of exchange risk deserve a clause: paying in local currency shifts that risk onto one of the parties.
General information as of 30 October 2026. Each transaction must be assessed against the applicable rules and the parties’ circumstances.
Fabien Gagnerot, Of Counsel — UGGC Africa