Ethiopia Joins PAPSS as Addis Ababa Prepares to Host Major African Payments Conference

Ethiopia has officially joined the Pan-African Payment and Settlement System (PAPSS), a move that allows the nation's financial institutions to settle cross-border transactions in local currencies. For fintech professionals, this integration marks a significant expansion of the continental payment network into one of East Africa’s largest economies, reducing reliance on third-party currencies for regional trade.

What was announced

The National Bank of Ethiopia (NBE) and PAPSS confirmed the country’s membership during a joint press conference held at the Ethiopia Finance Forum in Addis Ababa. The partnership enables Ethiopian banks and financial entities to connect directly to the PAPSS infrastructure, facilitating real-time, low-cost cross-border payments with other participating institutions across the African continent. While the NBE has formalised the entry, the actual extent of operational connectivity will depend on the individual implementation strategies of the domestic institutions involved.

In tandem with the membership announcement, Addis Ababa has been named as the host city for the second edition of Africa’s Payments Conference, COWRY 2026. Scheduled for November 26–27 at the Ethiopian Skylight Hotel, the event will operate under the theme “Scaling Africa’s Sovereign Payments: From Continental Connectivity to Global Integration.” Organisers anticipate an attendance of over 1,000 delegates, drawing from the banking, fintech, regulatory, and technology sectors. The conference programme is intended to address the technical and policy requirements for integrating African financial infrastructure with global markets, positioning Ethiopia’s financial-sector integration at the centre of the continental agenda ahead of the November gathering.

The companies involved

The Pan-African Payment and Settlement System (PAPSS) is a cross-border, financial market infrastructure enabling payment transactions across Africa. It was established under the auspices of the African Export-Import Bank (Afreximbank), the African Union Commission, and the African Continental Free Trade Area (AfCFTA) Secretariat. The system is designed to simplify the complexities of currency exchange by allowing for settlement in local African currencies, thereby supporting the broader goals of intra-African trade and economic integration.

The National Bank of Ethiopia (NBE) serves as the country’s central bank and regulatory authority for the financial sector. Under the leadership of Governor Eyob Tekalign, the NBE has been overseeing a period of significant digital transformation within the Ethiopian economy. Ethiopia’s entry into PAPSS follows a series of domestic initiatives aimed at modernising the nation’s financial rails. By joining the network, the NBE aligns Ethiopia with a growing list of African central banks seeking to reduce the cost and time associated with intra-continental trade, moving away from the traditional necessity of routing African payments through overseas correspondent banks and clearing houses.

What FF News has reported before

FF News has closely tracked the rapid evolution of Ethiopia’s financial landscape and the growth of the PAPSS network. Recently, we reported that PAPSS Reports 1,000% Transaction Surge as the network entered its next growth phase. In Ethiopia, the push for digitisation has been a recurring theme; we covered how Ethiopia Accelerates National Digital Payment Rollout for Government Services and the launch of new consumer tools like the Abay Bank Launches Pre-Paid Visa Card. Furthermore, the infrastructure supporting these moves was highlighted when EthSwitch Unveils Unified Government Payment Platform to modernise the digital economy.

What this means

Ethiopia’s accession to PAPSS is a clear indicator that the "sovereign payments" movement is gaining critical mass across the continent. By integrating one of Africa’s most populous nations, PAPSS significantly increases its network effects, putting pressure on traditional correspondent banking models that have long extracted high fees from intra-African trade. However, the success of this move rests on the speed of adoption by Ethiopia’s commercial banks. The industry must now watch whether the technical implementation matches the political ambition. As the COWRY 2026 conference approaches, the central question for the sector is whether local currency settlement can truly displace the dollar in regional trade.