On the sidelines of the Afreximbank Annual Meeting (AAM2025) in Abuja, the Pan-African Payment and Settlement System (PAPSS), in partnership with deep-tech firm Interstellar, unveiled the PAPSS African Currency Marketplace (PACM) — a next-gen financial market infrastructure designed to solve Africa’s persistent currency convertibility challenges.
Why it matters
Intra-African trade has long been stifled by the need to route payments through hard foreign currencies like the US dollar or euro.
This workaround costs the continent an estimated $5 billion annually in fees and delays. PACM allows African businesses to exchange local currencies directly, cutting costs, freeing up trapped capital, and unlocking the full potential of the African Continental Free Trade Area (AfCFTA).
The details
- PACM is a transparent, order book-driven marketplace that enables real-time, peer-to-peer local currency trading across borders.
- Built on Interstellar’s permissioned blockchain infrastructure, it supports secure, near-instant settlement and institutional-grade compliance.
- The system aligns with local regulatory frameworks while creating a single liquidity pool for African currencies.
- More than 80 African corporates participated in a pilot, trading across 12 currency pairs, with all transactions settled in local currencies.
What they’re saying:
- “We soon realised solving payments alone wasn’t enough. Trapped capital remains a major issue,” — Mike Ogbalu III, CEO of PAPSS
- “This is not just about technology — it’s about fulfilling a continental vision,” — Ernest Mbenkum, CEO of Interstellar
- “We can now accept each other’s currencies. That transforms trade,” — Haytham El Maayergi, EVP at Afreximbank
Zoom out
PAPSS, first launched in 2022, is already facilitating real-time cross-border payments across 17 countries, 14 national switches, and over 150 commercial banks.
With PACM, the initiative evolves from a payment rail to a full-fledged FX marketplace, supporting AfCFTA’s goal of a sovereign and self-reliant financial system.
Between the lines
Africa’s 41 currencies and fragmented FX systems have historically blocked regional trade. PACM could finally tip the scale by offering local liquidity, reducing reliance on third currencies, and enhancing financial sovereignty.
What’s next
PACM is now open to eligible corporations and financial institutions across Africa. PAPSS is also seeing interest from institutions outside Africa, hinting at the continent’s potential to influence global FX markets in the long term.
