(Ecofin Agency) - Since its launch in 2022, the Pan-African Payment and Settlement System (PAPSS), designed to simplify cross-border transactions between African countries, has been gradually expanding. It is already showing strong results, especially in several English-speaking countries in West Africa. In a 2023 interview with Ecofin Agency, its CEO, Mike Ogbalu III, outlined the platform’s ambitions and the main challenges it faces.

Two years later, on the sidelines of the African Development Bank’s Annual Meetings held in Abidjan from May 26 to 30, 2025, John Bosco Sebabi, Deputy CEO of PAPSS, gave us an update on the project. He shared his views on its progress, its future direction, and the key economic issues facing the continent.

Ecofin Agency: Where does PAPSS currently stand in terms of rollout across the continent?

John Bosco Sebabi: Let me begin with some background. PAPSS was created to make cross-border payments across Africa faster, easier, and more efficient. One of the biggest challenges for trade and movement on the continent is the issue of payments. We have seen that trade follows where payment systems are strong and reliable.

There are four main problems with cross-border payments today. First, speed, some transfers take two to five days, sometimes even longer. Second, cost, it is often far too expensive. Third, access, many of the most efficient systems are only available to wealthy clients with bank accounts. And finally, transparency, delays lead to confusion and lower trust in the system.

PAPSS addresses all of these issues. It is an instant payment system. The sender is debited right away, and the receiver gets the money in their local currency, almost in real time. Right now, it takes about 10 seconds to complete a transaction.

We started with the West African Monetary Zone, where the system is already working well. In Ghana, for example, around 80% of banks are now connected to PAPSS. We are expanding beyond traditional banking to include mobile apps. As of today, the system is active in 16 African markets, and we are steadily working to bring the rest of the continent on board.

Ecofin Agency: How do you see PAPSS helping increase capital flows across African borders and building a more integrated and inclusive financial market?

John Bosco Sebabi: That is a very important question. Payment systems are a key part of any financial ecosystem. A strong financial system needs to mobilize savings, direct capital efficiently, and ensure payments are smooth and quick.

PAPSS helps by connecting countries and making Africa’s financial infrastructure work better together. Our goal is to cut transaction costs, reduce settlement and operational risks, and ensure fast processing times. As I mentioned, payments on our platform take about 10 seconds.

The fees are also very competitive, between $2 and $12. That is one of the lowest pricing levels globally. To manage settlement risk, we have support from the African Export-Import Bank (Afreximbank), which set up a special fund. This fund acts like an overdraft facility for banks that might face short-term liquidity problems, preventing a ripple effect across the system.

Ecofin Agency: The African Union recently launched its African Credit Rating Agency. While not directly tied to PAPSS, it fits into the broader vision of boosting African economies. How might it affect the cost of borrowing for African countries and companies?

John Bosco Sebabi: I believe this new agency will be very important. Whether you are a government or a business, your credit rating sets the rate at which you can borrow. Unfortunately, Africa often faces inflated risk perceptions, mostly because outsiders do not fully understand our economic environments.

A pan-African rating agency that truly grasps the realities and strengths of African economies can help shift those perceptions. It can lead to lower borrowing costs and better access to funding. It is also part of building stronger financial institutions, ones that are well-capitalized and capable of channeling resources where they are needed.

Ecofin Agency: As Africa pushes for sustainable development, what kind of collaboration do you see between PAPSS, stock exchanges, and rating agencies to build a stronger, more self-reliant financial ecosystem?

John Bosco Sebabi: Like I said earlier, we need to build a financial system that is both efficient and integrated. That means real connections between markets, institutions, infrastructure, and processes.

Let me give an example. If stocks can be traded across Africa thanks to projects like the African Exchanges Linkage Project or the African Securities Exchanges Association, then payments linked to those trades also need to happen instantly. That is where PAPSS comes in. We are already working with several exchanges to connect trading platforms with payment systems.

At a broader level, African credit rating agencies will complement this setup. If we only develop stock exchanges or payment platforms or rating agencies on their own, we will not get a truly integrated financial system. Everything has to work together.

Ecofin Agency: PAPSS seems to have made strong progress toward its goals. What are the next steps in its rollout?

John Bosco Sebabi: The platform is now fully operational in the West African Monetary Zone. We are currently working to expand into other regions. We are in discussions with the BCEAO, which covers eight countries, and the BEAC, which covers six more. That would bring 14 additional countries into the fold. We are also looking at others that are not part of a regional central bank system.

There is also a pilot project underway in South Africa, one of the continent’s biggest markets. The next step is to connect these large markets so they can trade with each other easily. That is where we are in terms of deployment.

We are also working with regional payment systems. For example, we have started a project with COMESA’s regional payment and settlement system. We are collaborating with the SADC, South Africa, and other regional institutions. Our approach is to work directly with regional central banks and financial institutions to make full integration a reality.