Africa launches single continent’s currency Marketplace saving USD 5 Billion in trade bottleneck
Building on the successful rollout of its ground-breaking continental payment infrastructure, the Pan-African Payment and Settlement System in collaboration with Interstellar, a leading African deep-tech company, has launched the first African Currency Marketplace.
The Pan-African Payment and Settlement System’s African Currency Marketplace (PACM) is a next-generation Financial Market Infrastructure (FMI) out to solve the continent’s longstanding challenge of currency inconvertibility.
Launched in Abuja, Nigeria, the PACM will enable seamless, sovereign currency exchange for intra-African trade.
For decades, Africa’s economic momentum has been hindered by a fragmented financial landscape.
The continent’s 41 currencies, diverse regulatory environments, and lack of convertibility have created significant friction.
To trade with neighbouring countries, African businesses have often relied on external (hard) foreign currencies for foreign exchange, creating what experts call the “hard and costly currency bottleneck.”
This workaround drains an estimated USD 5 billion annually in fees, delays, and opportunity costs, undermining the competitiveness of African enterprises and slowing progress toward realising the African Continental Free Trade Area (AfCFTA).
But Mike Ogbalu, the Chief Executive Officer of Pan-African Payment and Settlement System, points out that since its official launch in 2022, PAPSS has enabled real-time cross-border payments across 17 countries, connecting 14 national switches and over 150 commercial banks.
“Now by creating a single, continent-wide liquidity pool, PACM serves as a powerful engine for intra-African commerce,” Ogbalu maintained, explaining that over USD 2 billion is currently ‘trapped’ in African countries where airlines operate, unable to repatriate their funds due to exchange restrictions or depreciation of local currencies.
The PAPSS African Currency Marketplace jointly developed by PAPSS and Interstellar, enables the direct exchange of African currencies without passing through hard currencies. As a transparent, continent-wide, peer-to-peer platform, it allows businesses to trade directly in local currencies in near real-time while remaining compliant with national regulations.
“This is not just about technology, it is about fulfilling a continental vision,” said Ernest Mbenkum, Founder and CEO of Interstellar, adding PAPSS African Currency Marketplace was built from the ground up to serve Africa’s specific needs.
The Executive Vice President of Afreximbank Haytham El Maayergi, said the PAPSS African Currency Marketplace provides the ability to transform trade dramatically, making trading between African states easier with each country accepting each other’s currency.
During its pilot phase, more than 80 African corporates transacted across 12 currency pairs, with all transactions settled in local currencies. For example, a company like Kenya Airways, which earns Nigerian Naira from ticket sales, can now use PACM to directly exchange Naira for Kenyan Shillings—without converting through a third currency.
With over 150 banks already connected through PAPSS and growing demand across the continent, PAPSS African Currency Marketplace stands as a game-changing financial tool for a more unified, sovereign, and efficient Africa.