The inclusion of the Bank of Algeria in “PAPS” represents a strategic milestone towards achieving broader financial integration among African countries. It is expected to simplify cross-border payment processes, accelerate the settlement of commercial transactions within the continent, and provide a unified and secure payment mechanism. The “PAPS” system aims to support intra-African trade by enabling member countries to transact directly in local currencies, reducing reliance on foreign currencies, which lowers international transfer costs and enhances the competitiveness of companies in regional markets, according to Algeria’s “Echorouk”. The “PAPS” system also relies on a mechanism that allows the sender in any African country to issue payment instructions in their local currency to their bank or service provider, ensuring that funds are transferred instantly or nearly instantly to the recipient in the other country, with settlement between central banks guaranteed within a maximum of 24 hours, and net settlement positions for each central bank in local currency determined at the end of each day. This step is expected to support African economic integration by speeding up payments, simplifying cross-border trade, and providing wider access for individuals and companies to modern and secure payment tools, thereby advancing commercial and financial activities among member countries to advanced levels. With Algeria announcing its joining of “PAPS”, it joins more than 15 countries across 4 African regions, within a growing banking network that includes over 115 commercial banks and 10 central banks, as part of a collective effort to enhance the continent’s financial sovereignty and activate the African Continental Free Trade Area. Zarwali also emphasizes that “Algeria, as the third-largest economy in Africa, possesses significant resources such as energy, infrastructure, and services, qualifying it to lead African economic initiatives, especially with its hosting of the African Intra-Trade Fair next September.”
