The Pan-African Payment and Settlement System has unveiled a revolutionary currency marketplace designed to eliminate $5 billion in annual trade costs and unlock trapped capital across the continent.
The PAPSS African Currency Marketplace, developed with African fintech pioneer Interstellar, enables direct peer-to-peer currency exchanges between African currencies without routing through external denominations. This addresses decades of economic integration challenges.
Since 2022, PAPSS has enabled real-time payments across 17 African countries, integrating 14 national switches and more than 150 commercial banks. However, currency inconvertibility remained a persistent barrier to seamless trade flows.
“Over $2 billion is currently locked in various African economies, preventing sectors like aviation from repatriating funds due to local currency depreciation and foreign exchange restrictions,” explained Mike Ogbalu III, CEO of PAPSS.
The marketplace addresses these constraints through blockchain-agnostic, enterprise-grade technology ensuring near real-time settlement with institutional-grade security. During pilot phases, more than 80 African companies traded across 12 currency pairs with all transactions settled in local currencies.
Practical applications include Kenya Airways directly exchanging Nigerian Naira revenue into Kenyan Shillings without dollar intermediation. Early adopters like ZEP-RE describe the platform as transformative for regional commerce.
Ernest Mbenkum, Founder and CEO of Interstellar, emphasized the platform’s Africa-first approach: “African currencies deserve better representation globally. This marketplace transforms local currencies from mere exchange mediums into vehicles of opportunity.”
The system’s success has attracted international attention, with foreign institutions expressing interest in joining the ecosystem. This validates the platform’s potential and signals growing global recognition of Africa’s financial transformation.
With over 150 participating banks, the marketplace promises to liberate capital, reduce settlement times from weeks to seconds, and dramatically cut transaction costs. This infrastructure development supports broader continental integration objectives.
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