The African Export-Import Bank (Afreximbank) and the Secretariat of the African Continental Free Trade Area announced today the rollout of the Pan African Payment and Settlement System (PAPSS). It is aimed at enabling African countries to make instant cross-border payments in local currencies.
“PAPSS would serve as a continent-wide platform for the processing, clearing, and settling of intra-African trade and commerce payments, leveraging a multilateral net settlement system. Its full implementation is expected to save the continent more than $5 billion in payment transaction costs each year,” according to an official statement.
The PAPSS has already been tested in the West African Monetary Zone (WAMZ), the same area where a single currency project is being developed under the Eco label. To accelerate the expansion and ensure settlement finality, Afreximbank has approved $500 million to support clearing and settlement in countries within the WAMZ. An estimated additional $3 billion will be made available to support the implementation of the system across the continent.
Central banks on the continent have agreed to use the facility, but discussions are still needed to secure maximum membership. The share of intra-African trade remains low, according to indicators from the International Trade Centre. In 2020, imports between African countries reached $58.6 billion, down for the second year in a row, and representing less than 12% of the total imports of countries in the region.
The weak volume of intra-African trade is mainly due to the multiplicity of currencies on the continent. “With the implementation of PAPSS, Africa can expect to begin to reap the fruits of the African Continental Free Trade Agreement. Afreximbank is proud to have contributed to the realization of the multi-decade dream that seemed unachievable just a few years ago,” said Benedict Oramah, Chairman of PAPSS Management Board and Afreximbank President.
From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...
Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...
• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...
Malawi votes in high-stakes presidential election Tuesday Economic crisis, inflation dominate vot...
Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...
5G penetration in Sub-Saharan Africa stands at 1.2% despite $28 billion in operator investments over five years. High smartphone and data plan...
Mombasa's commuter train service resumed on September 17, 2025, after modernization. The expanded 16.6 km line connects Mombasa's main district and...
INP-HB and HABG signed an MoU to develop an Executive Master's in Compliance and Anti-Corruption. The program aims to train competent professionals in...
DBSA closed a 100 mln rand ($5.7 mln) financing for EV charging stations. Local firm Zero Carbon Charge will build 60 solar-powered stations by...
Surprisingly, only one African song made it onto Rolling Stone's list of the 500 Greatest Songs of All Time. The track is "Essence," a collaboration...
The Umhlanga Festival, also known as the “Reed Dance,” is one of the most iconic cultural events in the Kingdom of Eswatini in Southern Africa. Every...