Adefeko: PAPSS Saving Africa Over $5bn Annually, 19 Nations Join Continental Payment Network

Sunday Ehigiator

The Director of Corporate and Regulatory Affairs at Olam Agri, Ade Adefeko, has said that the Pan-African Payment and Settlement System (PAPSS) is saving African countries more than $5 billion annually in transaction costs.

 Adefeko, in a statement disclosed that 19 nations have joined the continental payment network backed by the African Union (AU) and the African Export-Import Bank (Afreximbank).
He noted that the system, which facilitates cross-border payments in local currencies, is transforming how Africans trade and is crucial to advancing the goals of the African Continental Free Trade Area (AfCFTA).

According to him, “This unified backing is crucial, as the system is regulated by the PAPSS Governing Council (PGC), a body composed of the Central Bank Governors from participating countries. This ‘College of Governors’ provides robust oversight, ensuring the platform’s stability, security, and alignment with national monetary policies.

“What began as a successful pilot in the West African Monetary Zone (WAMZ) has scaled at an impressive pace. As of 2025, the PAPSS network has expanded its footprint across four regions, connecting 19 countries, with over 150 commercial banks and 14 payment switches. This now includes a significant presence in North Africa, with countries like Morocco, Algeria, Egypt, and Tunisia on board, alongside growing corridors in East and Southern Africa.”
He added, “This year, 2025, has been a critical turning point for Africa’s payment sovereignty with the launch of two game-changing products. The ‘PAPSSCARD’, Africa’s first continental card scheme, was launched in June to challenge the dominance of foreign card networks. Hailed as a ‘bold move toward financial sovereignty’, the card aims to keep processing, fees, and data within Africa.

“While regional systems like the East African Payment System (EAPS) and COMESA’s Regional Payment and Settlement System (REPSS) have existed for years, their adoption has often struggled, limited by fragmented liquidity and a lack of interoperability. This is where PAPSS provides a critical solution. By leveraging PAPSS, these regional systems can be connected, allowing it to act as a ‘network of networks’ that provides the final, continental net settlement layer they previously lacked.”

The future, experts say, lies in the collaboration between these regional systems and the continental PAPSS platform.

“This synergy is the key to creating a truly unified African payment market, moving from isolated pockets of trade to a seamless flow of capital. The economic impact is staggering: PAPSS is forecast to save the continent more than $5 billion USD annually in payment transaction costs, money that was previously lost to fees for currency conversions and routing payments through offshore correspondent banks.

“The initiative has been championed by Professor Benedict Oramah, President of the African Export-Import Bank (Afreximbank), who has described PAPSS as a ‘transformational’ tool for achieving African financial sovereignty. His vision has been to create a system that allows an African to buy goods from another African country using their local currency,” he said.