Ethiopia has joined the Pan-African Payment and Settlement System (PAPSS), enabling financial institutions across the country to connect to the network and participate in secure, instant cross-border payments with counterparts across Africa.
According to a statement, the announcement was made during a press conference held on the sidelines of the Ethiopia Finance Forum in Addis Ababa on Thursday.
This comes as the continent’s payments landscape is evolving rapidly, with payment systems becoming increasingly interconnected and fintech innovation accelerating through new technologies.
Developed under the auspices of Afreximbank, the African Union, and the African Continental Free Trade Area Secretariat, PAPSS serves as a core pillar of continental economic integration. By enabling local currencies to be exchanged directly, the infrastructure removes the traditional reliance on third-party foreign currencies such as the US dollar, bypassing costly overseas correspondent banks to lower costs and reduce settlement times.
The integration comes at a pivotal moment for Ethiopia's rapidly expanding financial landscape. According to recent data from the National Bank of Ethiopia (NBE), between 2020 and 2025, annual digital transaction volumes and values grew at a compound annual growth rate of 146% and 161% respectively.
Furthermore, cross-border financial flows have increased exponentially; the country recorded $10.7 billion in export revenue and accumulated $8.2 billion in diaspora remittances during the 2025/26 fiscal year.
Connecting to PAPSS will enable the East African nation to channel more of these high-volume flows directly into intra-African trade channels efficiently.
Dr Eyob Tekalign, governor of NBE, emphasised that joining PAPSS modernises the national financial system and deepens continental ties.
Mike Ogbalu III, CEO of PAPSS, noted that Ethiopia's dynamic ecosystem makes it a vital addition to the growing infrastructure, which now spans over 15 countries, including Kenya, Malawi, Nigeria, Tunisia and Zambia. It links more than 150 commercial banks.
“Participating in the Ethiopia Finance Forum has allowed me to witness first-hand a dynamic and innovative financial ecosystem, with institutions and entrepreneurs eager to embrace new technologies, build new partnerships and play a greater role in Africa’s financial transformation. Ethiopia joining the PAPSS network is an important milestone.”
Share
