---
title: Pan-African Payment and Settlement System (PAPSS)
type: technology
url: "https://www.envisioning.com/research/vault/africa__papss-cross-border-settlement"
hub: vault
summary: The African Export-Import Bank built PAPSS to enable direct currency-to-currency settlement across Africa — reducing the $5B annual cost of routing African payments through New York and London.
---

# Pan-African Payment and Settlement System (PAPSS)

The African Export-Import Bank built PAPSS to enable direct currency-to-currency settlement across Africa — reducing the $5B annual cost of routing African payments through New York and London.
- Technology Readiness Level: 7/9
- Impact: 4/5
- Investment: 4/5
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.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/vault/africa__papss-cross-border-settlement)