South Africa Formally Joins Afreximbank, Gaining Access to PAPSS Network

South Africa formally became a member of Afreximbank in February 2026, a development with significant implications for pan-African payment connectivity. The membership gives South African banks direct access to the Pan-African Payment and Settlement System (PAPSS), enabling real-time cross-border payments across 12 African countries.

Strategic Significance

South Africa is Africa's most industrialized economy and its largest by GDP. Its absence from PAPSS had been a notable gap - South African banks are major players in cross-border African trade finance but had been processing intra-African payments through traditional correspondent banking channels.

Integration Timeline

The SARB and major South African commercial banks (Standard Bank, FirstRand, Absa, Nedbank) are expected to complete PAPSS integration by mid-2026. South Africa's existing RTGS system (SAMOS) will connect to PAPSS infrastructure, enabling settlement in South African Rand alongside the 42 other African currencies already supported.

What This Means

South Africa's Afreximbank membership is arguably the most significant PAPSS expansion since launch. South African banks process a substantial share of intra-African corporate payments, and their PAPSS connectivity could redirect significant volumes from USD-intermediated correspondent banking to direct local-currency settlement. This strengthens the economic case for PAPSS as genuine continent-wide payment infrastructure.

Sources: Afreximbank, Reuters