Consider a future in which African businesses can trade seamlessly in local currencies, free from the constraints of dollar dependence.
This vision is becoming a reality with the launch of the Pan-African Payment and Settlement System (PAPSS) African Currency Marketplace (PACM), a groundbreaking initiative unveiled at the 2025 Afreximbank Annual Meeting in Abuja.
This innovative Financial Market Infrastructure (FMI) promises to redefine intra-African trade by tackling the $5 billion “currency bottleneck” that has long slowed economic growth across the continent.
What Is the PAPSS African Currency Marketplace?
The PAPSS African Currency Marketplace, developed in collaboration with Interstellar, a leading African deep-tech company, enables direct exchange of African currencies without relying on intermediaries like the U.S. dollar or euro.
Launched on the sidelines of the Afreximbank Annual Meeting (AAM2025) from June 25 to 28, 2025, PACM leverages a blockchain-agnostic platform to facilitate real-time, transparent, and secure transactions.
This system supports the African Continental Free Trade Area (AfCFTA) goals by promoting financial integration and reducing costly foreign exchange (FX) conversions.
Key Features of PACM
- Transparency and Regulation: Mike Ogbalu III, CEO of PAPSS, emphasises that PACM is “fully transparent, order book-driven, and adheres to local regulatory frameworks.”
- Liquidity Engine: The marketplace creates a continent-wide liquidity pool, acting as a powerful engine for intra-African commerce.
- Currency Flexibility: With support for multiple currency pairs, businesses can trade using local currencies like the Kenyan Shilling, Nigerian Naira, or Ghanaian Cedi.
READ ALSO:A Card for Africa, by Africa
How PACM Addresses the $5 Billion Trade Bottleneck
Africa’s fragmented financial ecosystem, with 41 currencies and varied regulatory environments, has historically stifled intra-African trade.
According to Afreximbank’s African Trade Report 2025, intra-African trade accounted for only 14.4% of the continent’s formal trade in 2024, despite a 12.4% year-on-year increase to $220.3 billion.
The reliance on hard currencies for cross-border payments has led to significant losses, estimated at $5 billion annually, due to fees, delays, and exchange rate fluctuations.
PACM eliminates these inefficiencies by allowing direct currency swaps. For instance, a company like Kenya Airways can now exchange Nigerian Naira earned from ticket sales into Kenyan Shillings without a third-currency conversion, unlocking trapped capital and slashing FX costs.
Early adopters, including ZEP-RE and Access View Africa, have hailed the platform as “a dream come true.”
The Vision Behind PACM
Ernest Mbenkum, CEO of Interstellar, highlights the transformative potential: “This is about fulfilling a continental vision. Your local currency becomes a vehicle of opportunity.”
By leveraging Interstellar’s STARGATE platform, PACM ensures near-instant settlement, institutional-grade security, and compliance with global best practices.
This shift toward financial sovereignty aligns with AfCFTA’s mission to boost intra-African trade and reduce reliance on external financial systems.
Early Success and Future Potential
Since its pilot phase in countries like Ghana, Kenya, Nigeria, and Cameroon, PACM has gained popularity, with over 80 corporates transacting across 12 currency pairs.
The platform’s expansion to 17 countries, including the recent addition of Morocco with Bank Al-Maghrib, highlights growing confidence in its ability to drive economic integration.
With over 150 banks and 14 national switches already connected through PAPSS, PACM is poised to accelerate financial inclusion and trade efficiency.
The launch of complementary initiatives like PAPSSCARD, Africa’s first pan-African payment card, further strengthens this ecosystem by enabling affordable cross-border retail transactions.
READ ALSO:PAPSS Hits 17 Countries as Morocco Signs On
Is This the Future of African Financial Sovereignty?
The question remains: Can PACM redefine African trade? By eliminating the need for dollars and euros, it not only saves billions but also empowers local economies.
However, widespread adoption will depend on political will, regulatory alignment, and participation from more African nations.
As Africa strives to increase intra-African trade from 15% to 25% by 2030, PACM stands as a bold step toward economic self-reliance.
Stay tuned as this initiative evolves, potentially reshaping the continent’s financial landscape.
For the latest updates on PACM and its impact on African trade, follow developments from Afreximbank and PAPSS. Could this be the dawn of a dollar-free trading era in Africa? Share your thoughts in the comments!
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
Leave a Reply