Africa launches currency marketplace to boost intra-African trade

Intra-African trade has improved with the launch of a payment system that allows direct exchanges of African currencies without depending on the US dollar or other hard currencies.

This follows the partnering of Pan-African Payment and Settlement System, or PAPSS, with Interstellar, a leading African deep-tech company, to introduce the PAPSS African Currency Marketplace, also known as PACM, marking a major step in Africa's effort for financial independence.

Mike Ogbalu III, CEO of PAPSS, stated that the platform could save the continent about $5 billion each year in fees, delays and lost opportunities that harm African businesses and slow progress toward the African Continental Free Trade Area, or AfCFTA.

The payment infrastructure was announced on Monday during the 2025 Afreximbank Annual Meeting in Abuja, Nigeria. It removes dependency and allows direct currency swaps across the continent while following national regulations.

For many years, Africa's economic growth has faced challenges due to a fragmented financial system. The continent's 41 currencies, varying regulatory rules and limited convertibility have created significant barriers.

"The model is fully transparent, order book-driven and works with trusted counterparties while following local regulations and global best practices," Ogbalu said in a statement.

He added that by creating a single liquidity pool for the continent, PACM serves as a strong liquidity engine for intra-African trade.

The launch marks a key moment in PAPSS's development since its official start in 2022 when PAPSS enabled real-time cross-border payments across 17 countries, connecting 14 national switches and over 150 commercial banks.

PAPSS began as a pilot in the West African Monetary Zone and quickly grew to become the main settlement layer of the AfCFTA's financial system.

"We soon realized that just solving for payments was not enough. Companies, airlines, reinsurance firms and multinationals working in Africa still faced challenges due to limited currency convertibility and heavy reliance on hard currencies," he said.

Ernest Mbenkum, founder and CEO of Interstellar, pointed out that PACM was designed to meet Africa's specific needs, stating that "African currencies deserve a better place in the world."

"We are creating a future where Africa does not have to depend on foreign systems to exchange value. Our infrastructure will drive Africa's financial growth."

Haytham El Maayergi, executive vice-president of Afreximbank, said the platform's impact is already noticeable during its pilot phase as more than 80 African companies have carried out transactions in 12 currency pairs, all settled in local currencies.

He highlighted that Kenya Airways can now convert Nigerian Naira earned from ticket sales directly into Kenyan Shillings, avoiding costly third-party exchanges.

"The PACM empowers us to revolutionize trade, enabling us to transact with each other more easily and accept each other's currencies," he said.