Central Bank of Comoros: Commencement of activities for the implementation of PAPSS in Comoros

Moroni, August 23, 2024 – The Central Bank of Comoros (Banque Centrale des Comores-BCC) and the Pan-African Payment and Settlement System (PAPSS) announce the official commencement of activities for the implementation of PAPSS in Comoros. This initiative, supported by Afreximbank and the African Union, is part of efforts to make the African Continental Free Trade Area (AfCFTA) a reality by facilitating cross-border payments in local currencies of member countries.

Designed to simplify transactions between African countries, the PAPSS now enables Comorians to make payments to other countries on the continent directly in Comorian francs. This represents a considerable advantage for the State, the private sector and households, by reducing the costs and delays of their transfers, while eliminating the need to convert to foreign currency. With the PAPSS, payments will be made in a record time of 120 seconds and at a lower cost.

As part of this initiative, the Central Bank of Comoros signed the membership agreement in July 2024 and joined the PAPSS network. On 21 August, the BCC and PAPSS co-organized a workshop at the BCC headquarters, bringing together the Chief Executive Officers of Commercial Banks and Microfinance Institutions in Comoros. This workshop provided an opportunity to present in detail the functioning of PAPSS and its advantages, especially for local traders who will now be able to expand their activities to other African markets without traditional financial barriers.

At the end of the workshop, a press conference was held with the participation of Dr Younoussa Imani, Governor of the BCC and Mr John Bosco Sebabi, Deputy CEO of PAPSS.

Mr Sebabi stressed that: “the implementation of PAPSS in the Comoros is a decisive step in the deployment of the system throughout the African continent. PAPSS represents a significant step towards financial integration in Africa, not only facilitating trade transactions between the Comoros and other African countries, but also contributing to the achievement of the objectives of the AfCFTA. Our ambition is to improve trade and strengthen economic integration on the continent.”

The Governor of the BCC launched an appeal to commercial banks to join the PAPSS, a necessary condition for Comorians to benefit from this continental platform. This system facilitates banking sector transactions in Africa.

This partnership between the BCC and PAPSS reflects a shared desire to promote a more inclusive and accessible financial system in Comoros. Commercial Banks in Comoros will soon begin integrating into PAPSS, enabling their customers to make payments across Africa, whether in-branch or via digital banking services.

Source: Afreximbank