PAPSS to Boost Intra-African Trade by 15% as Cross-Border Payments Expand
PAPSS to Boost Intra-African Trade by 15% as Cross-Border Payments Expand
The Pan-African Payment and Settlement System (PAPSS) is positioning itself as a critical financial infrastructure for boosting intra-African trade by making cross-border payments faster, cheaper and more accessible through local currencies.
Speaking in the latest episode of CNN’s Marketplace Africa, PAPSS Chief Executive Officer, Michael Ogbalu, told host Victoria Rubadiri that the payment platform was designed to eliminate some of the major financial barriers limiting trade between African countries.
According to Ogbalu, PAPSS enables businesses, corporations and individuals to make payments across African borders by sending funds in one local currency and receiving them in another local currency.
“PAPSS is a payment infrastructure that is designed to help accelerate trade on the African continent,” Ogbalu said.
He noted that traditional cross-border payment systems have often been expensive and slow, particularly in Africa, creating additional costs for businesses and consumers.
“If you look at some of the most expensive corridors in the globe, actually you have them mostly in Africa. So the question is, how come the poorest pays the most for payments?” he said.
Ogbalu said PAPSS has reduced payment costs by as much as 95%, while processing times have been cut by more than 98%, with transactions now capable of being completed within 120 seconds.
Since its launch in 2022, PAPSS has expanded its network to 20 African countries, connecting 170 commercial banks and 16 payment switches. Ogbalu said commitments from additional markets could increase its reach to at least 34 countries in the coming months.
PAPSS targets Africa-Caribbean payment link
The PAPSS chief also disclosed plans to extend the payment infrastructure beyond Africa through a proposed connection with the Caribbean Community (CARICOM).
Speaking from the Afri-Caribbean Investment Summit, Ogbalu said the objective is to establish a similar payment infrastructure across CARICOM member states before linking it directly with PAPSS.
He said the initiative would make payments between Africa and the Caribbean more seamless and help stimulate trade between the two regions.
“Suddenly payments into the Caribbeans will be as seamless and it will boost trade,” Ogbalu said.
He described payment infrastructure as a key component of national economic development, stressing the importance of having systems designed and controlled within the continent.
“Payment systems are essentially tied to the prosperity of nations,” he said, adding that Africa needs “a payment system that is built for Africa, controlled by Africa, and that will drive Africa's prosperity.”
PAPSS supports AfCFTA ambitions
Ogbalu also highlighted the relationship between PAPSS and the African Continental Free Trade Area (AfCFTA), describing efficient payment infrastructure as essential to achieving the continent's economic integration objectives.
“Our payment system actually gives the AfCFTA the installation that it needs to be able to actually survive and make Africa a superpower economically,” he said.
Looking ahead, Ogbalu projected that PAPSS could contribute to a 10% to 15% increase in intra-African trade over the next three to five years.
He said the expected benefits would extend particularly to small businesses, logistics operators and technology companies, allowing enterprises to view other African markets as potential customers without being constrained by complex cross-border payment processes.
“Small businesses who actually power Africa will begin to see the rest of Africa as their markets,” he said.
The full conversation is featured in the latest episode of CNN’s Marketplace Africa, examining the future of African trade and the role of financial infrastructure in unlocking the continent’s economic potential.
The programme airs on CNN International at 04:30 WAT, 07:30 WAT and 18:30 WAT on Sunday, July 26, 2026; 03:30 WAT on Monday, July 27; 17:45 WAT on Friday, July 31 and Saturday, August 1; 04:45 WAT and 07:45 WAT on Sunday, August 2; and 03:45 WAT on Monday, August 3, 2026.
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