Ruto Urges COMESA Member States to Ratify Pan-African Payments System to Boost Intra-Africa Trade

By Samuel Ouma

President William Ruto has implored the Common Market for Eastern and Southern Africa (COMESA) member states to ratify the Pan-African Payments and Settlement System (PAPSS).
Once completely implemented, this system will revolutionize trade by removing the need for foreign currency transactions within the continent, a development that Ruto estimates may save Africa more than $5 billion per year in transaction fees.

At the 23rd COMESA Summit in Bujumbura, Burundi, President Ruto emphasized the strategic importance of PAPSS in simplifying transactions for traders, allowing them to focus more on developing commerce rather than currency exchange issues.

“Instead of our traders chasing currency exchanges, they can be comfortably chasing trade initiatives,” President Ruto said.

The Pan-African Payments and Settlement System is a joint initiative of the African Export-Import Bank (Afreximbank) and the African Continental Free Trade Area (AfCFTA). It seeks to enhance intra-African trade by facilitating seamless cross-border transactions in local currencies.

This system is projected to reduce dependence on foreign exchange for intra-African commerce by dramatically lowering transaction costs and trade restrictions, particularly for small and medium-sized businesses.

The Kenyan leader applauded recent advancements, such as the recently implemented Tripartite Free Trade Area (TFTA), as watershed moments in regional integration and trade facilitation.