Ethiopia Joins Pan-African Payment Network, Opening New Path for Cross-Border Payments
Ethiopia's participation in a regional payment system could eventually give businesses a simpler way to pay suppliers across African borders.
By Accounts Payable Professionals Group
Published October 21, 2026, 5:30 AM EDT
Updated October 21, 2026, 10:30 AM EDT
The National Bank of Ethiopia has joined the Pan-African Payment and Settlement System (PAPSS), opening the way for Ethiopian financial institutions to connect with participating banks elsewhere in Africa.
PAPSS facilitates cross-border payments using local currencies, reducing reliance on foreign currencies such as the U.S. dollar. The system aims to simplify transactions that traditionally involve currency conversions, correspondent banks, additional fees, and longer settlement times.
What It Means for AP
For accounts payable departments managing suppliers across African borders, PAPSS could eventually offer a more efficient alternative to traditional international bank transfers.
However, Ethiopia's participation does not mean the network is immediately available to every Ethiopian business. Individual financial institutions must connect to PAPSS and meet applicable operational and compliance requirements.
The announcement did not identify the first participating Ethiopian commercial banks or provide a date for live commercial transactions.
Companies paying Ethiopian suppliers should monitor which banks begin offering PAPSS transactions and evaluate the network's availability, settlement times, fees, and compliance requirements before considering changes to their payment procedures.
Ethiopia's participation marks another step in the development of regional payment infrastructure for African trade. For AP teams, the practical impact will depend on how widely banks and businesses adopt the system.
National Bank of Ethiopia
Pan-African Payment and Settlement System (PAPSS)
