AFRICA’S long-promised payments revolution may finally be within reach.
The Pan-African Payment and Settlement System (PAPSS) is on course to process up to 80 percent of all payments across the continent within the next five years, according to its chief executive, Mike Ogbalu III.
Speaking during a regional financial forum, Ogbalu said the rapid scaling of PAPSS reflects growing confidence among African central banks, commercial lenders and payment providers that the continent can finally settle trade in its own currencies — and within its own borders.
‘We are building the infrastructure that allows Africa to pay itself,’ he said.
Launched by Afreximbank in partnership with the African Union, PAPSS is designed to enable real-time cross-border payments in local currencies, eliminating the need for costly offshore correspondent banking channels. Its expansion is widely seen as critical to unlocking the full potential of the African Continental Free Trade Area (AfCFTA), which seeks to create a single market of more than 1.4 billion people.
A system built for Africa’s trade ambitions
For decades, even the simplest transaction between two African countries often travelled thousands of kilometres outside the continent — usually through Europe or the United States — before being settled.
That structure inflated costs, delayed payments and exposed African businesses to foreign exchange volatility.
PAPSS was created to change that equation.
The platform allows participating banks to clear and settle transactions instantly in domestic currencies, with Afreximbank providing the settlement guarantee. In practice, a trader in Ghana can now pay a supplier in Kenya without converting funds into dollars or euros.
According to PAPSS, this model can reduce transaction costs by up to 60 percent and cut settlement times from days to seconds.
Momentum builds across the continent
Since becoming operational in 2022, PAPSS has steadily expanded its footprint. More than a dozen central banks have now joined the platform, alongside commercial banks, fintechs and national payment switches.
Ogbalu said adoption has accelerated as African governments push to deepen regional trade and retain liquidity within domestic financial systems.
‘The volumes we are seeing today are only the beginning,’ he noted, adding that onboarding efforts are intensifying across West, East and Southern Africa.
Financial analysts say the five-year 80 percent target, while ambitious, reflects the absence of serious alternatives offering continent-wide settlement in local currencies.
Reducing Africa’s dollar dependence
Beyond efficiency, PAPSS carries major geopolitical significance.
Intra-African trade remains heavily dollarised, even when transactions involve neighbouring countries. That dependence has long constrained monetary policy and drained scarce foreign reserves.
By enabling direct currency settlement, PAPSS supports a broader continental push for financial sovereignty — a theme increasingly echoed by African finance ministers and central bank governors.
Afreximbank has estimated that Africa loses more than $5 bn annually to transaction fees and currency conversion costs tied to offshore payment routing.
Keeping those flows within Africa could free capital for investment, infrastructure and industrial development.
Linking payments to AfCFTA success
Experts argue that AfCFTA cannot function effectively without seamless payments infrastructure.
Tariff reductions and trade protocols mean little if businesses cannot move money efficiently.
PAPSS is therefore being positioned as AfCFTA’s financial backbone, connecting manufacturers, traders and service providers across borders with minimal friction.
The system is also expected to integrate with emerging platforms such as the African Currency Marketplace, which aims to improve liquidity between African currencies.
Over the next five years, PAPSS plans to prioritise transaction volume growth, wider bank participation and deeper integration with fintech ecosystems.
Ogbalu said success will ultimately depend on trust — trust in African institutions, currencies and systems.
‘This is not just about payments,’ he said. ‘It’s about confidence in Africa trading with itself.’
If PAPSS reaches its 80 percent target, it would mark one of the most significant shifts in Africa’s financial architecture since independence — turning decades of ambition for economic integration into a functioning, digital reality.
