The Central Bank of Tunisia (BCT) announced on Tuesday that it had joined the Pan-African Payment and Settlement System (PAPSS).
Launched by Afreximbank, PAPSS enables the efficient flow of money securely across African borders, minimising risk and contributing to financial integration across the regions.
Created since January 2022 under the African Continental Free Trade Area (AfCFTA), of which Tunisia has been a member since July 2020, the PAPSS network currently has 108 participants, including 12 central banks and 96 African commercial banks, reads a BCT press release.
The BCT joined this payment system under an agreement inked on Tuesday by BCT Governor Marouane El Abassi, in the presence of Trade and Export Development Minister Kalthoum Ben Rejeb, Afreximbank Executive Vice President Georges Elombi and PAPSS CEO Mike Ogbalu III.
On this occasion, El Abassi pointed out that joining the PAPSS reflects the BCT’s commitment to Tunisia’s strategic priorities for regional integration on the African contine
nt at the economic and financial levels.
“This initiative supports and crowns the government’s efforts, under the aegis of the Trade Ministry so as to make Tunisia’s integration into the AfCFTA a reality,” he added.
El Abassi further indicated that after joining the pan-Arab multi-currency payment platform (BUNA) early 2022, the BCT is continuing its commitment to Tunisia’s strategic priorities, especially regional integration in economic and financial matters, by joining the PAPSS.
In this respect, he urged the banks and the post office to join this fast, secure and less costly alternative mechanism to provide the best possible support for Tunisian economic operators in their economic and financial transactions on the African continent.
According to him, the goal is to pave the way for Tunisia to create a new commercial momentum with Africa and expand the spectrum of opportunities with this high-potential trading area.
For her part, Ben Rejeb highlighted the importance of joining such a platform, which
will help promote integration into the formal sector and boost intra-African exports, while cutting transaction costs and reducing processing times.
Taking the floor, PAPSS CEO welcomed the BCT’s accession to the PAPSS, indicating that this is a historic event marking the very first accession of a North African central bank to this system and the consolidation of the relationship between Afreximbank and Tunisia.
He further pointed to the importance of this step, which will undoubtedly help improve cross-border payments between Tunisia and the rest of Africa.
The official went on saying that he is “confident” that the BCT’s accession would bear fruit and lead to concrete advances for trade and economic growth in Africa.
Source: Agence Tunis Afrique Presse