Algeria has officially adopted the Pan-African Payment and Settlement System (PAPSS), a cross-border financial platform designed to boost intra-African trade by enabling instant transactions in local currencies.
The announcement was made this week by the African Export-Import Bank (Afreximbank), which developed PAPSS in collaboration with the African Continental Free Trade Area (AfCFTA). The system is intended to reduce reliance on foreign currencies such as the U.S. dollar in cross-border transactions, cutting costs and processing times.
By joining, Algeria becomes one of the latest African economies to integrate into the network, which is currently operational in more than a dozen countries. Afreximbank President Benedict Oramah hailed the move as “a critical step toward the economic sovereignty of Africa.”
Algerian officials said PAPSS will ease trade between the country and its African partners, supporting diversification efforts away from oil dependence. Algeria is the fourth-largest economy in Africa and has been seeking stronger ties within the AfCFTA framework.
Analysts argue that widespread adoption of PAPSS could save Africa over $5 billion annually in transaction costs while accelerating regional integration. However, challenges remain, including uneven financial infrastructure, varying regulatory frameworks, and the need for trust among central banks.
Still, Algeria’s entry is seen as a significant boost to the system’s credibility and a milestone toward building a unified African market.