Ethiopia Joins Africa Payments Platform

Africa’s efforts to make business and financial transactions easier across the continent have received a boost following Ethiopia’s decision to join the Pan-African Payment and Settlement System (PAPSS). The move is expected to strengthen financial connections between African countries and reduce some of the difficulties associated with sending and receiving money across national borders.
For many years, making payments between African countries has been slow, expensive and complicated. Traders, businesses and individuals often have to rely on foreign currencies, international banks and several financial intermediaries to complete transactions. This can increase transaction charges, cause delays and make cross-border trade more difficult.
Ethiopia’s decision to join PAPSS is therefore an important development in Africa’s efforts to improve trade, financial cooperation and economic integration.

What Is PAPSS?
The Pan-African Payment and Settlement System, commonly known as PAPSS, is a financial platform designed to make sending and receiving money between African countries easier, faster and cheaper.
In simple terms, it allows people and businesses in participating African countries to make cross-border payments using their local currencies without necessarily converting their money into US dollars or euros first.
The system was developed by the African Export-Import Bank (Afreximbank), in collaboration with the African Union Commission and the Secretariat of the African Continental Free Trade Area (AfCFTA).
For example, a Nigerian trader buying goods from an Ethiopian supplier could potentially make a payment in naira, while the Ethiopian supplier receives the equivalent amount in Ethiopian birr through participating financial institutions.
According to PAPSS, its instant payment service can process transactions within approximately 120 seconds, significantly reducing the delays associated with traditional international banking channels.

Why Ethiopia Joining Matters
Ethiopia's decision to join PAPSS was announced on October 15, 2026, by the payment platform. The country's central bank, the National Bank of Ethiopia, described the development as an important step towards modernising its financial system and strengthening economic relationships with other African countries.
The development is significant because Ethiopia is one of Africa's major economies, with an important role in regional trade, manufacturing, agriculture and aviation.
Its participation will expand the geographical reach of PAPSS and create opportunities for Ethiopian businesses and financial institutions to connect more easily with other African markets.
According to Reuters, PAPSS operates in more than 15 African countries and has a network of over 150 commercial banks. Ethiopia's entry is another step towards building a more connected African financial system.
Another important benefit is the reduced dependence on foreign currencies, particularly the US dollar, for transactions between African countries.
Currently, some African businesses experience difficulties accessing foreign exchange when paying suppliers or transferring earnings from other countries. PAPSS could help reduce these challenges by providing an alternative payment channel.
However, Ethiopia's membership does not mean that every bank or business in the country can immediately use the platform. Financial institutions will still need to connect to the system and make its services available to customers.

What This Could Mean for Traders and Travellers
For traders, Ethiopia's participation could create new opportunities to conduct business with customers and suppliers across Africa.
Small businesses, importers and exporters could benefit from faster payments, reduced transaction costs and fewer currency conversion difficulties. This could make it easier for businesses to expand into neighbouring and distant African markets.
For example, a Nigerian business importing Ethiopian agricultural products could eventually enjoy a simpler payment process without relying entirely on traditional international banking arrangements.
Travellers could also benefit in the future if banks and payment service providers extend PAPSS services to individuals.
Nigerians visiting Ethiopia, or Ethiopians travelling to other participating African countries, could potentially find it easier and cheaper to make payments, receive money or access financial services across borders.
However, the benefits for travellers will depend on the availability of participating banks, payment providers and services in their destinations. Joining PAPSS does not automatically mean that all local bank cards or mobile wallets will work across Africa.

A Step Towards African Financial Integration
Ethiopia joining PAPSS represents another important development in Africa's efforts to strengthen economic cooperation and reduce barriers to intra-African trade.
As more countries participate, the platform could help businesses operate across borders with fewer financial difficulties and encourage greater use of African currencies.
Although challenges such as currency exchange rates, banking regulations, infrastructure and financial connectivity remain, PAPSS offers an opportunity to address some of the problems affecting cross-border transactions.
Ultimately, the success of the initiative will depend on how effectively participating countries connect their banks and make the services accessible to ordinary people and businesses.
Africa's ambition of making trade easier within the continent will require more than agreements between governments. It will also require a payment system that allows money to move as easily as goods and services. Ethiopia's decision to join PAPSS is another step in that direction.