• PAPSS launches platform performing direct currency conversion and fostering economic integration across Africa.

• The continent loses about $5 billion yearly due to lack of currency.

In a bid to address the billion-dollar loss brought about by the diversity of currencies and regulatory environments in Africa, and the inconvertibility of currencies, the Pan-African Payment and Settlement System (PAPSS) in collaboration with Interstellar, a tech-focused African company, has announced the launch of the PAPSS African Currency Marketplace (PACM).

According to a statement released by Afreximbank on July 7, 2025, this financial market platform will facilitate the clear and direct exchange of local currencies to ease trade between African countries, bypassing the use of strong currencies like the US dollar and Euro.

The platform will also offer the ability to trade directly in local currencies in real-time while adhering to national regulations. “It releases liquidity, unlocks capital, eliminates excessive exchange costs, and supports the continent's long-term financial sovereignty goal,” explains the statement.

Currency diversity, differing regulatory frameworks, and currency inconvertibility continue to hamper Africa’s economic momentum. As a result, the continent loses about $5 billion every year, due to high fees, delays, and opportunity costs. This makes African companies less competitive and slows the concretization of the African Continental Free Trade Area (AfCFTA) project.

The PAPSS’ new platform aims to address the weaknesses in currency systems that obstruct smooth transactions. Its effectiveness was demonstrated during the pilot phase, wherein more than 80 African businesses undertook transactions on 12 currency pairs, all settled in local currencies.

Operational since 2022, the PAPSS is a pan-African financial infrastructure aimed at facilitating real-time cross-border payments between African countries using local currencies. It has enabled real-time cross-border payments in 17 nations, connecting 14 national clearance systems and over 150 commercial banks. The institution was established by Afreximbank in conjunction with the African Union Commission and the AfCFTA secretariat.

An Afreximbank report titled "African Trade Report 2024: Climate Implications of the AfCFTA Implementation" indicates that intra-African trade remains weak despite growth of 7.2% in 2023, reaching $192 billion.

This article was initially published in French by Lydie Mobio

Edited in English by Ola Schad Akinocho