The Pan-African Payment and Settlement System (PAPSS) is an ambitious solution to Africa’s long-standing reliance on third-party currencies such as the dollar and euro. Officially launched in Accra in 2022 by the African Export-Import Bank (Afreximbank), in partnership with the African Union, PAPSS was created with a singular purpose: to redefine how the continent trades and interacts financially and unlock the full potential of trade under the African Continental Free Trade Area (AfCFTA). Led by Mike Ogbalu, PAPSS provides a centralised cross-border infrastructure that allows African businesses to transact securely in 42 local currencies, with settlement occurring entirely within the continent.
Despite this innovation, the uptake has been modest. PAPSS suffers from low public awareness. As of early 2025, less than 20% of African SMEs surveyed by the Trade Law Centre (Tralac) were aware of PAPSS or could articulate its benefits and how it worked. This gap in awareness is not a reflection of the system’s capability but rather an awareness challenge. Even the most technically sound solution cannot succeed without strong public understanding and trust.
Africa’s fragmented financial systems have long made intra-continental transactions slow, expensive, and unreliable. A typical payment from Lagos to Accra, or from Monrovia to Nairobi, can pass through several intermediary banks, incurring fees and delays that frustrate both businesses and individuals. For entrepreneurs and traders, these inefficiencies translate into lost opportunities, delayed deliveries, and strained relationships.
For many Nigerians who are familiar with local systems like the Nigeria Inter-Bank Settlement System (NIBSS) and its instant payment infrastructure, PAPSS offers a similar convenience. The real-time efficiency of NIBSS is what PAPSS replicates for Africa. PAPSS enables a business in Accra to settle with a counterpart in Lagos or Cotonou in their respective local currencies, with transactions completed in under two minutes. Yet, more than 80% of Africa’s intra-continental trade still flows through non-African currencies. Afreximbank estimates that this dependency costs Africa over $5 billion annually in fees and lost value. The potential savings and strategic advantage offered by PAPSS are clear; however, realising them depends on broad-based adoption.
The African Continental Free Trade Area (AfCFTA) promises the world’s largest single market: 55 countries, 1.4 billion people, and a combined GDP of over $3.4 trillion. But without seamless payment systems, trade cannot thrive. As of 2025, 11 countries, including Rwanda, Zambia, Kenya, Zimbabwe, Djibouti, and six nations in the West African Monetary Zone (WAMZ) – Nigeria, Gambia, Sierra Leone, Liberia, Ghana, and Guinea – are live on the PAPSS platform.
Infrastructure alone cannot change trade. Adoption must follow. Regulatory improvements are beginning to close that gap. In April 2025, the Central Bank of Nigeria introduced simplified Know Your Customer (KYC) requirements for PAPSS payments. Individuals can now transact up to $2,000 and businesses up to $5,000 with basic identification. This development dramatically reduces the cost and effort involved in cross-border transactions, particularly for businesses looking to enter new West African markets such as Sierra Leone, The Gambia, and Liberia.
Afreximbank has also recently piloted a new product: the Africa Currency Marketplace – within PAPSS, tailored for corporates with multi-country operations. This solution targets common delays in fund movement across African borders. It holds particular relevance for sectors such as logistics, events, agriculture, and manufacturing that anchor the real economy. A Ghanaian production company could seamlessly pay a set designer in Abidjan. A Nigerian marketing firm could hire a consultant in The Gambia. This is what regional integration should look like: fluid, frictionless, and real.
Financial institutions such as Keystone, Ecobank, and Prudential Bank are among the early adopters. However, adoption among businesses remains staggered, and limited communication at scale has made it harder for the system to gain ground among those who would benefit the most. As the third year of PAPSS implementation approaches, it is vital to deepen usage and expand awareness. Chambers of commerce and sector leaders have a critical role to play. These institutions are great aggregators; they must help make PAPSS part of the everyday vocabulary of African business. They must champion stories of those who have used it successfully, advocate for policy harmonisation, and champion adoption within their industries.
Systems alone do not create success. People and positioning do. The businesses that will thrive are those with the right approach. Scaling horizontally across African borders requires more than logistics. Financial infrastructure like PAPSS can unlock scale, but it must be matched with clear, culturally intelligent brand consistency. Trust and visibility remain the most important currencies in a connected Africa. At Flagscale PR, we support businesses in refining their market positioning. Because ultimately, the future of African trade will belong to those who are visible, trusted, and ready to transact without limits.
PAPSS is revolutionising the way we handle payments across Africa. But communication is still the key to unlocking adoption and growth for businesses willing to scale.
.Fatihah is the founder- Flagscale PR, a public relations firm championing data-driven storytelling for African SMEs through tailored strategic communication solutions that positions businesses for credibility and scale within the AfCFTA framework. A creative voice-over artist and gender equality advocate, she’s passionate about arts & governance. Email: flagscalepr@gmail.com
