Prudential Bank has solidified its role in fostering intra-African commerce by executing its first cross-border payment to Kenya via the Pan-African Payment and Settlement System (PAPSS), a platform designed to streamline trade under the African Continental Free Trade Agreement (AfCFTA).
The transaction, conducted with Kenya’s KCB Bank, marks a significant step in reducing reliance on foreign currencies for regional trade and underscores Ghana’s leadership in advancing financial integration.
Launched in Accra in January 2022, PAPSS aims to simplify transactions across Africa by enabling direct settlements in local currencies. Bernard Gyebi, Managing Director of Prudential Bank, highlighted the institution’s early adoption of the system, stating, “This milestone reflects our commitment to innovation and Africa’s economic unity. By collaborating with PAPSS, we’re breaking barriers to trade and positioning the bank as a catalyst for the AfCFTA agenda.”
Eleven countries, including Ghana, Kenya, Nigeria, and Zambia, are now active on PAPSS, with Tunisia and Comoros nearing integration. Ebow Quayson, Prudential Bank’s Executive Head of Retail and Commercial Banking, emphasized the platform’s practical benefits: “Businesses can now transact seamlessly—pay in Ghana cedis while partners receive funds in their local currency. This eliminates forex complexities and unlocks new opportunities for growth.”
Developed by Afreximbank, PAPSS partners with central banks and financial institutions to facilitate real-time settlements, reducing transaction costs and delays. Its expansion aligns with broader efforts to enhance Africa’s self-reliance in trade, offering a blueprint for reducing dollar dependency. As more nations join, the system could accelerate economic cohesion, turning regional trade ambitions into tangible progress.
This initiative arrives as African economies seek pragmatic solutions to longstanding trade hurdles. By prioritizing local currency usage and infrastructure collaboration, PAPSS—and pioneers like Prudential Bank—may redefine how the continent navigates globalization, balancing external pressures with homegrown innovation.
