The Pan-African Payment and Settlement System, developed by Afreximbank and launched with the AfCFTA Secretariat in January 2022, is designed to facilitate real-time cross-border payments in African local currencies without routing through US dollar correspondent banks. Previously, a payment from a Ghanaian company to a Kenyan supplier required conversion to US dollars, routing through a US correspondent bank, and reconversion to Kenyan shillings, with costs of 5 to 8 percent of transaction value and processing times of 1 to 3 business days. PAPSS allows the same transaction in under 60 seconds at a fraction of the cost.
Scale and Impact
PAPSS is connected to central banks and commercial banks across 50 African countries as of 2024. Monthly transaction volumes are growing at 40 percent quarterly as commercial banks integrate the system into their trade finance and cross-border payment workflows. The system is projected to handle $5 billion in intra-African trade payments annually by 2025. For African businesses making cross-border payments, PAPSS-connected banks offer significantly cheaper and faster services. PAPSS-connected bank contacts and integration guidance are available on intra-africa.com.
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