The Bank of Central African States (BEAC) has joined the Pan-African Payment and Settlement System (PAPSS), expanding the cross-border payment network into the Central African Economic and Monetary Community (CEMAC). 

BEAC announced its participation in PAPSS on Thursday as part of an effort to expand the network into its member countries, increasing coverage to 28 African countries. 

According to PAPSS, the partnership connects more than 190 commercial banks and fintech companies through 16 payment switches, enabling transfers to more than 250 financial institutions.

The expansions will make cross-border payments faster, cheaper, and more reliable, boosting intra- African trade under the African Continental Free Trade Area (AfCFTA) and reducing reliance on foreign currencies.

The membership also boosts regional connectivity across its six member countries, which include the Central African Republic, the Republic of Congo, Gabon, Equatorial Guinea, Cameroon, and Chad.

The expansion is expected to make cross-border payments faster, cheaper, and more reliable, increasing intra-African trade under the African Continental Free Trade Area (AfCFTA) and reducing reliance on foreign currencies.

The Chief Executive Officer of PAPSS, Mike Ogbalu III, said the opportunity “opens new trade and payment corridors between Central Africa and the rest of the continent, enabling faster, more affordable and more efficient cross-border payments that will support trade and economic activity.” 

Governor of the Bank of Central African States and Chair of the Association of African Central Banks, Yvon Sana Bangui, said the partnership would create new trade opportunities.

Mr Bangui added, “The success of African trade integration will depend not only on policy and infrastructure, but also on the active involvement of the financial sector.”

The system is expected to begin later this year with a pilot programme with the Central Bank of West African States (BCEAO).

PAPSS was launched in 2022 by Afreximbank in partnership with the African Union and the AfCFTA Secretariat to reduce international intermediaries and ensure more efficient cross-border payment networks across Africa.