Bank Al-Maghrib, Morocco’s central bank, has officially joined the Pan-African Payment and Settlement System (PAPSS), a landmark development that reinforces efforts to boost intra-African trade and financial integration.

By becoming the 17th country to join PAPSS, Morocco signals its commitment to the African Continental Free Trade Area (AfCFTA) and a unified African market.

The initiative, spearheaded by the African Export-Import Bank (Afreximbank), in collaboration with the African Union and the AfCFTA Secretariat, provides a centralized platform for real-time cross-border payments in local currencies. The goal is simple yet transformative: eliminate the dependency on third-party currencies like the US dollar and Euro in trade transactions among African countries.

The inclusion of Morocco, known for its strategic geographic position bridging Africa and Europe, significantly adds to the economic weight and relevance of PAPSS. Morocco also boasts one of the continent’s most sophisticated banking systems and has been aggressively expanding its footprint across West and Central Africa in sectors such as banking, telecommunications, and agriculture.

According to Mike Ogbalu III, CEO of PAPSS, Morocco’s entry signals growing momentum and confidence in the system.

“With more countries joining, we are taking significant strides towards a truly unified African market, driving down transaction costs and empowering businesses and individuals across the continent.”
Mike Ogbalu III

Addressing Africa’s Longstanding Trade Bottlenecks

Historically, nearly 80 per cent of Africa’s trade has been conducted with partners outside the continent. This paradox exists largely due to inefficiencies in cross-border payment systems, which make it cheaper and more convenient to trade with Europe, Asia, or North America than with neighboring African states.

PAPSS was designed precisely to confront this issue by providing a reliable infrastructure for financial transactions within the continent. It allows buyers and sellers in different African countries to pay and receive money in their respective national currencies, with conversions and settlements handled centrally and instantly.

By lowering transaction costs, eliminating delays, and reducing the risk associated with foreign exchange volatility, PAPSS serves as a catalyst for growth and regional cooperation. In an era of global financial instability, many African countries are looking inward to build resilience. This includes minimizing dependence on external currencies and creating homegrown systems that can support long-term economic sustainability.

Dr. Benedict Oramah, outgoing President of Afreximbank, has described PAPSS as “critical infrastructure” for Africa’s transformation. He likened its significance to the evolution of regional payment systems that supported rapid economic growth in other developing regions.

Toward a 25% Intra-African Trade Target by 2030

With the current rate of intra-African trade hovering around 15 per cent, the AfCFTA has set an ambitious goal of pushing this figure to 25 per cent by 2030. PAPSS is central to achieving this target by removing one of the biggest hurdles—inefficient and costly payment systems.

Morocco’s participation will especially enhance trade with countries where its firms have expanding operations. It also offers a practical solution for businesses of all sizes—from SMEs to large multinationals—that want to operate seamlessly across African borders without worrying about currency exchanges and long transaction wait times.

The growth of PAPSS reflects a broader shift toward African self-reliance and regional collaboration. As more countries come on board, the system is likely to become the default method for intra-African payments, driving a more efficient, connected, and prosperous continent.