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Kenya has successfully secured the bid to host the Pan-African Payment and Settlement System (Papss), a pivotal electronic platform aimed at enabling traders across the continent to settle deals in their respective national currencies. This victory places Kenya at the forefront of a broader initiative by African nations to reduce their reliance on the US dollar in trade transactions.
President William Ruto made the historic announcement on Tuesday, underscoring the significance of this achievement for Kenya and the African continent. The Papss is set to be officially adopted by the African Union’s Assembly of Heads of State and Government in February, as confirmed by the President during a gathering in Nairobi.
One of the key objectives of this innovative payment platform is to streamline trade by eliminating the need for traders to convert their national currencies into a third currency, which has historically been the US dollar. It is estimated that the Papss could potentially save the continent a substantial sum of approximately Sh750 billion ($5 billion) in conversion costs. These figures are based on estimates provided by the African Continental Free Trade Area (AfCFTA) secretariat, headquartered in Accra.
This groundbreaking development positions Nairobi as a central hub for facilitating intra-African trade, offering a promising future for the continent’s economic integration and prosperity. As the Papss initiative gains traction, it is expected to foster greater economic autonomy and strengthen trade ties among African nations.