As Algeria prepares to host the Intra-African Trade Fair from September 4 to 10, 2025, the Bank of Algeria has joined the Pan-African Payment and Settlement System (PAPSS), becoming its 18th member. This membership, seen as a decisive step towards African financial integration, aims to reduce the high costs of cross-border transactions, streamline trade, and limit the country’s dependence on foreign currency. For Algiers, this is not only about strengthening the competitiveness of its companies on the continental market, but also asserting its leading role in the implementation of the African Free Trade Area (AfCFTA).
As Algeria prepares to host the Intra-African Trade Fair 2025 (IATF 2025) in Algiers from September 4 to 10, the Bank of Algeria has officially joined the Pan-African Payment and Settlement System (PAPSS). The institution thus becomes the 18th member of this strategic platform designed to facilitate trade on the continent. The Bank of Algeria’s membership in PAPSS comes as Africa strives to increase intra-continental trade, currently estimated to vary between 12 and 15% of total African trade volume, compared to more than 60% in Europe and Asia.
« We have connected the central banks of our member countries as settlement agents on our network. Thus, when there is trade between central banks, we are able to settle it on a multilateral basis. »
Mike Ogbalu III, CEO of PAPSS – Nigeria
According to international trade experts, PAPSS is seen as a major lever for realizing the ambitions of the AfCFTA, which aims to create a single market of 1.3 billion consumers. For the Algerian authorities, this membership represents a way to reduce the country’s dependence on external financial channels, open its businesses to African markets, and assert its leading role in the implementation of the AfCFTA. According to the platform’s director, Mike Ogbalu III, the system has already reduced cross-border transaction costs by up to 27%, while generating growth of more than 1,000% in digital volumes among partner banks.
« Transactions have started to fluctuate on the platform. We have not yet reached the desired volume, but it is gratifying to see these transactions grow each month. »
Mike Ogbalu III, CEO of PAPSS – Nigeria
Established by the African Export-Import Bank (Afreximbank), in partnership with the African Union Commission and the African Continental Free Trade Area (AfCFTA) Secretariat, PAPSS aims to reduce cross-border payment costs and boost intra-African trade by providing a faster, more secure and less costly settlement framework.
