PAPSS and AfDB Drive Intra-African Trade with Policy Alignment and Payment Innovation

Efforts to boost intra-African trade are gaining momentum, with the African Development Bank (AfDB) and the Pan African Payment and Settlement System (PAPSS) collaborating to streamline trade finance and reduce transaction costs across the continent. These initiatives are crucial for realizing the full potential of the African Continental Free Trade Area (AfCFTA).

Policy Alignment and Capital Mobilization

Dr. Kennedy Mbekeani, Director-General for Southern Africa at the African Development Bank, has emphasized the need for stronger policy alignment and increased mobilization of private capital to unlock Africa’s trade potential under the AfCFTA. Speaking at the 2026 Africa Trade Conference in South Africa, hosted by Access Bank, Mbekeani highlighted that Africa possesses the necessary financial resources, institutions and capital for development, but requires improved coordination and confidence in its systems to foster growth. AfDB, PAPSS promote policy alignment, cheaper payments across Africa

Mbekeani stated that Africa’s large population and abundant natural resources position it to become one of the world’s largest consumer markets if governments harmonize policies and create favorable business environments. He also underscored that the continent’s development challenge isn’t a lack of capital, but rather the effective mobilization and allocation of existing resources into crucial infrastructure and productive sectors.

Bridging the Infrastructure Gap with Public-Private Partnerships

Mbekeani urged African governments to deepen partnerships with the private sector in key areas such as energy, transport, water, and education to address the continent’s infrastructure deficit. He noted the success of public-private partnerships in several countries, demonstrating that private investors can deliver essential infrastructure when supported by clear policies and robust regulatory frameworks. AfDB, PAPSS promote policy alignment, cheaper payments across Africa

PAPSS: Revolutionizing Payment Systems

The Pan African Payment and Settlement System (PAPSS) is playing a pivotal role in reshaping trade finance in Africa by enabling local currency transactions across 22 countries. Mike Ogbalu, CEO of PAPSS, explained that the system aims to restore control of African trade financing to the continent. PAPSS: Revolutionising African trade financing

Launched in 2022, PAPSS allows payments initiated in one African currency to be received in another within seconds, eliminating the need for third-party currencies and lengthy correspondent banking processes. A payment originating in Nigerian Naira, for example, can be received in Egyptian Pounds in a matter of seconds. PAPSS: Revolutionising African trade financing The system guarantees transaction completion within 120 seconds, with most payments currently processed in approximately 12 seconds.

PAPSS has significantly reduced cross-border payment costs – by more than 98% – even as ensuring compliance with global standards for anti-money laundering, sanctions screening, and fraud management. Currently, the platform operates in around 20 African countries, connecting over 170 commercial banks and fintech firms. PAPSS: Revolutionising African trade financing

Addressing Perceptions and Building Confidence

Mbekeani also stressed the importance of African institutions actively shaping the global narrative surrounding the continent’s investment climate, noting that perceptions of risk are often overstated. He urged Africa to “advise its own story” and present a more accurate portrayal of its investment potential.

The Future of Intra-African Trade

Both the AfDB and PAPSS recognize the AfCFTA as a historic opportunity to build a truly integrated African market. Successful implementation requires concerted efforts from governments, financial institutions, and businesses to translate the vision into tangible results. The focus on policy alignment, innovative payment systems, and infrastructure development is expected to significantly boost intra-African trade, strengthen supply chains, and enhance the continent’s resilience to global economic disruptions. From Landlocked to Land-Linked: How Access Bank is Bridging Africa Trade Financing Gap