The Pan-African Payment and Settlement System (PAPSS), launched in 2022 by the African Export-Import Bank (Afreximbank), enables instant cross-border payments between African countries in local currencies. Before PAPSS, a payment from Nigeria to Kenya had to be converted to USD, routed through correspondent banks in New York or London, and converted back — adding cost, delay, and foreign dependence. PAPSS allows direct naira-to-shilling settlement, eliminating the need for dollar intermediation.
Africa's intra-continental trade is only 15% of total trade — compared to 60% for Europe and 50% for Asia — partly because cross-border payments are expensive and slow. PAPSS aims to remove this friction, supporting the African Continental Free Trade Area (AfCFTA). Over 15 central banks have connected to PAPSS, covering 70%+ of Africa's GDP. The system processes transactions in real-time, settling in under 120 seconds.
The sovereignty dimension is fundamental. Africa currently depends on the SWIFT system and US dollar clearing for most cross-border payments — a vulnerability that became obvious when Russia was disconnected from SWIFT in 2022. PAPSS creates an African alternative for intra-African trade, reducing exposure to external financial sanctions or disruptions. This is financial infrastructure sovereignty at the continental level.