In a move that cements its dual role as a gateway between Africa and Europe, Morocco’s central bank, Bank Al‑Maghrib, has formally joined the Pan‑African Payment and Settlement System (PAPSS).
As the 17th participating nation, Morocco’s entry is poised to enhance cross‑border transactions—particularly in local currencies—under the African Continental Free Trade Area (AfCFTA) framework.
PAPSS, an initiative spearheaded by the African Export‑Import Bank (Afreximbank) in partnership with the African Union and the AfCFTA Secretariat, offers real‑time settlement of intra‑African payments. By bypassing traditional dollar and euro corridors, it aims to slash transaction costs, mitigate currency‑conversion risks, and deepen financial integration.
“Morocco’s well‑developed banking system and its extensive trade ties with sub‑Saharan Africa will give PAPSS fresh impetus,” said Mike Ogbalu III, PAPSS CEO. “This step will help Moroccan exporters and investors transact more efficiently with partners in West and Central Africa—regions where Moroccan firms have rapidly expanded in recent years.”
Currently, some 80 percent of African trade is conducted outside the continent—a statistic driven largely by outdated payment mechanisms that favour dollar‑ or euro‑denominated transactions. PAPSS confronts these inefficiencies, enabling businesses large and small to settle payments directly in local currencies.
Morocco’s participation is expected to unlock smoother trade flows in sectors ranging from agriculture and telecommunications to manufacturing. It also supports the AfCFTA’s goal of raising intra‑African trade from around 15 percent today to 25 percent by 2030.
Dr. Benedict Oramah, outgoing President of Afreximbank, hailed PAPSS as “critical infrastructure” for Africa’s economic transformation—comparable to payment systems that powered growth in Asia and Latin America. Morocco’s onboarding underscores a growing continental consensus on reducing reliance on foreign currencies and external payment rails, a priority sharpened by recent global financial disruptions.
As PAPSS extends its reach, Morocco stands to strengthen its position as a continental financial hub, facilitating faster, cheaper, and more secure transactions across Africa’s emerging market landscape.
