Ethiopia has officially joined the Pan-African Payment and Settlement System (PAPSS), the National Bank of Ethiopia and the network operator announced in Addis Ababa on Thursday, 15 October. The accession is intended to allow the country's financial institutions to connect to infrastructure designed for cross-border payments between African economies.
The arrangement allows a customer to send funds in their national currency and the beneficiary to receive them in theirs, through participating banks or payment providers. It aims to reduce successive currency conversions and reliance on banking channels outside the continent, which can lengthen delays and raise the cost of transfers.
Customers gain access through an institution connected to the system. In its technical operation, PAPSS notably provides for the pre-funding of participants' accounts, so that the necessary funds are available before payments are executed. The network also carries out compliance checks on instructions received.
Ethiopia was already listed in PAPSS's June 2026 coverage guide, but under its extended network, which only allows partners to receive payments. This scope is distinct from that of participating institutions that can both send and receive funds.
Developed under the auspices of Afreximbank, the African Union and the secretariat of the African Continental Free Trade Area, PAPSS supports trade between African countries. The National Bank of Ethiopia and the operator have also announced that their payments conference will be held on 26 and 27 November in Addis Ababa.