The Central Bank of Liberia (CBL) marked a historic milestone on Thursday with the official launch of the National Financial Education Program (Fin-Ed) and the rollout of the Pan-African Payment and Settlement System (PAPSS), initiatives set to transform Liberia's financial landscape and foster economic growth.
The Pan African Payment & Settlement System (PAPSS) is a groundbreaking payment platform that enables Liberian businesses to conduct transactions with other African nations using the Liberian dollar. This system will reduce currency exchange costs, improve transaction efficiency, and boost regional trade.
In 2024 alone, PAPSS facilitated transactions amounting to L$37.7 million within Liberia and L$169.5 million outside Liberia. By expanding its reach, PAPSS is set to reinforce Liberia's economic integration within the African Continental Free Trade Area (AfCFTA).
Addressing a packed audience of government officials, diplomats, and business leaders, CBL Executive Governor Henry F. Saamoi underscored the significance of the event in empowering citizens with financial literacy and enhancing cross-border transactions.
"This event marks a significant milestone in our commitment to fostering a financially inclusive and technologically advanced economy," Governor Saamoi declared in his opening remarks.
He emphasized that financial education and digital payment systems are twin pillars of economic empowerment, providing citizens with the knowledge and tools to transact efficiently both within Liberia and across Africa.
Governor Saamoi took the opportunity to thank key partners for their support, including the U.S. Treasury's Office of Technical Assistance, the World Bank, the African Development Bank, and others, whose contributions have been instrumental in the initiative's development.
Financial literacy, Governor Saamoi noted, is essential for national prosperity. "An informed population makes better financial decisions, leading to economic resilience and sustainable development," he said.
However, he acknowledged the significant gap in financial education, citing a 2024 survey in which 77% of respondents had never received formal financial education. The CBL's partnership with FeJA and other local organizations aims to bridge this gap by conducting community workshops and radio programs in local languages, targeting diverse populations including market women and youth groups.
In a related announcement, Governor Saamoi highlighted the rapid growth of Liberia's mobile money and digital transactions. "More mobile transactions surged to 471 billion in 2024, up from 421 billion in 2023," he reported. Mobile money, he added, has become the dominant form of electronic payment, with over 3 million active subscribers. This growth supports the CBL's goal of modernizing Liberia's financial system, creating a seamless connection between traditional banking and digital finance.
A key feature of yesterday's launch is the rollout of PAPSS, a groundbreaking system designed to facilitate cross-border payments in local currencies. Governor Saamoi explained the advantages of PAPSS for businesses and consumers alike. "Transactions are allowed in local currencies, eliminating reliance on U.S. dollars for intra-African trade," he said, highlighting the system's potential to reduce transaction costs and currency volatility.
The launch was also attended by Mike Ogbalu, CEO of PAPSS, who lauded Liberia's participation in the initiative, noting that the CBL has been a strong partner from the very beginning. "Today, we stand at the forefront of a transformative journey," Ogbalu said, celebrating the system's role in enhancing economic independence by facilitating seamless transactions across Africa. "PAPSS is not merely a payment system; it is a revolutionary financial infrastructure built to global standards," he added.
Ogbalu further emphasized PAPSS's role in bridging Africa's fragmented regional payment systems, citing the challenges of costly intra-Africa remittance systems and lengthy transaction processes that have long hindered trade on the continent. "With PAPSS, businesses can now procure supplies from countries like Ghana without the hurdles of foreign exchange conversions," he explained.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The initiative, which was endorsed by the African Union in 2019, is now operational in 16 African countries, with over 150 commercial banks integrated into the system. Liberia is one of the key players, with eight of its nine commercial banks already connected to PAPSS, ensuring that financial services are accessible even in the most remote parts of the country.
Governor Saamoi concluded his remarks with a call to action: "To our small, medium, and large business communities, I urge you to embrace financial literacy. Leverage PAPSS to explore more business opportunities and strengthen our regional commerce." He affirmed the CBL's commitment to driving financial inclusion and economic growth, both in Liberia and across Africa.
