The Pan-African Payment and Settlement System (PAPSS) is fast becoming the financial backbone of the African Continental Free Trade Area (AfCFTA), leading a quiet revolution in how African nations trade and transact with one another.
Created to simplify cross-border payments within Africa, PAPSS has grown rapidly, supported by unprecedented political and regulatory alignment across the continent. It has been formally adopted by the African Union Heads of State and endorsed by Central Bank Governors, who serve as the PAPSS Governing Council (PGC) — the body ensuring policy coordination, security, and monetary oversight.
From Pilot to Pan-African Network
Initially launched as a pilot project in the West African Monetary Zone (WAMZ), PAPSS has scaled impressively. As of 2025, it connects 19 countries, over 150 commercial banks, and 14 payment switches across four regions — including a growing footprint in North Africa, with Morocco, Algeria, Egypt, and Tunisia now part of the network.
This expansion marks a significant leap toward continental financial integration, a core pillar of AfCFTA’s ambition to boost intra-African trade and reduce dependence on external payment systems.
Two Landmark Launches in 2025
The year 2025 has been pivotal for PAPSS, marked by two major innovations:
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PAPSSCARD: Launched in June as Africa’s first continental card scheme, it aims to challenge the dominance of international card networks by ensuring that transaction processing, data, and fees remain within Africa — a bold step toward financial sovereignty.
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PAPSS African Currency Marketplace (PACM): Introduced in July, this platform enables direct, peer-to-peer exchange of African currencies. It provides a solution to one of Africa’s biggest financial bottlenecks — blocked airline revenues, which according to IATA exceed $846 million. PACM allows businesses to convert local revenues transparently and efficiently, freeing up trapped capital.
Solving Fragmentation with a Unified Network
For years, regional systems like the East African Payment System (EAPS) and COMESA’s Regional Payment and Settlement System (REPSS) have struggled with fragmented liquidity and interoperability issues. PAPSS bridges these gaps by acting as a “network of networks,” connecting existing regional systems under one umbrella and providing a continental settlement layer.
Experts say this collaboration will unlock seamless cross-border trade, turning Africa’s isolated payment corridors into a single, integrated financial ecosystem.
The economic implications are significant — PAPSS could save over $5 billion annually in transaction fees previously lost to currency conversions and offshore correspondent banks.
Global Recognition and Institutional Backing
The Bank for International Settlements (BIS) and the Committee on Payments and Market Infrastructures (CPMI) recently recognized multilateral payment platforms like PAPSS as critical to improving global cross-border efficiency. Their joint report emphasized that such systems thrive when regulators provide support and market participants actively engage — conditions PAPSS already fulfills.
Leadership and Vision
Professor Benedict Oramah, President of the African Export-Import Bank (Afreximbank), has been a driving force behind PAPSS. He describes it as a “transformational step toward African financial sovereignty,” envisioning a system where an African can pay for goods from another African country in their own local currency.
As Afreximbank transitions to new leadership, continuity in championing PAPSS will be vital to fully realizing this continental vision.
The Road Ahead
PAPSS is evolving into more than a payments network — it is building the infrastructure for interoperability, linking banks, national payment switches, and mobile money operators.
By connecting economies, currencies, and people, PAPSS is turning the AfCFTA’s promise of a unified African market into a practical, working reality — one transaction at a time.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
