PAPSS Gains Momentum as Game-Changer for Intra-African Trade

The second day of the 32nd Annual Meetings of Afreximbank in Abuja shone a spotlight on the Pan-African Payment and Settlement System (PAPSS), with leaders across Africa’s financial ecosystem hailing it as one of the most transformative tools for facilitating intra-African trade.

With trade under the African Continental Free Trade Area (AfCFTA) picking up momentum, PAPSS—developed by Afreximbank in partnership with the African Union and African Central Banks—is quickly becoming the backbone of financial integration across the continent.

“We Don’t Need to Go Through New York to Pay Our Neighbours”

That was the rallying cry from one central bank governor participating in the high-level dialogue session. The official praised PAPSS for cutting transaction costs by over 50% and reducing settlement time from days to seconds.

“With PAPSS, Africa now has the infrastructure to ensure payments stay within the continent,” he added. “No more unnecessary conversion to U.S. dollars or euros just to trade with each other.”

Already operational in the West African Monetary Zone, PAPSS has processed thousands of cross-border transactions, and more countries are finalizing integration into the platform.

Breaking Currency Barriers in African Trade

Afreximbank President Prof. Benedict Oramah emphasized the historical significance of PAPSS during the sessions, describing it as “an African solution to an African problem.”

Historically, over 80% of intra-African trade payments have been routed through external clearing banks, often in London or New York. This created not only delays and added costs, but exposed African businesses to exchange rate risks and compliance restrictions.

With PAPSS, traders, SMEs, and even governments can now transact in local currencies, supported by Afreximbank’s liquidity and guarantee framework.

“If we want a truly integrated market, we must ensure that payment systems are no longer a bottleneck. PAPSS solves this,” Oramah stated.

Regulatory Harmonization: The Next Hurdle

While PAPSS’s benefits are undeniable, speakers highlighted the importance of regulatory alignment across Africa’s 54 central banks.

One panelist noted: “We are moving money across borders at lightning speed, but we must ensure that compliance, KYC standards, and AML safeguards are harmonized. Without it, adoption will stall.”

In response, Afreximbank reaffirmed its collaboration with MANSA, the continent’s central repository for customer due diligence information, to support PAPSS and boost trust and transparency in cross-border transactions.

Driving Trade Under AfCFTA

Participants from trade ministries and private sector chambers emphasized that PAPSS is now a strategic pillar of the AfCFTA’s success.

“It’s one thing to reduce tariffs. It’s another thing to make sure money moves freely and fast,” remarked a West African trade commissioner.

They credited PAPSS with:

• Enabling instant payments for goods and services across borders;
• Reducing dependence on hard currency reserves;
• Empowering African SMEs to access new markets with minimal capital restrictions.

Afreximbank announced plans to extend PAPSS to Southern and Eastern Africa by Q4 2025, with pilot programs already underway.

PAPSS as Africa’s SWIFT Alternative?

A lively discussion followed on whether PAPSS could eventually rival SWIFT, the global messaging platform for financial institutions.

Though PAPSS is still in its early stages, delegates agreed that African digital financial infrastructure is rapidly evolving. “It’s about sovereignty,” one senior banking executive said. “We can no longer be dependent on systems that can exclude us or collapse under global pressure.”

PAPSS, backed by the AU and Afreximbank, represents more than efficiency—it’s about ownership of Africa’s financial destiny.