Afreximbank Banks on Digital Payments to Unlock Africa’s Trillion-Dollar Trade Potential

Egypt, 30 May 2026 - Africa's push for economic integration received a significant boost as Afreximbank unveiled a suite of digital payment solutions aimed at dismantling one of the continent's most persistent barriers to trade: the movement of money across borders.

For decades, African businesses have faced a costly contradiction. Goods often move more easily across continents than payments move across neighbouring countries. Transactions between African states frequently pass through correspondent banks in Europe or North America, attracting delays, multiple currency conversions and high costs. Afreximbank believes that model belongs to the past.

Showcasing its flagship Pan-African Payment and Settlement System (PAPSS), the bank argued that Africa's trade ambitions under the African Continental Free Trade Area will only succeed if payment systems match the pace of economic integration. PAPSS allows businesses and financial institutions to settle transactions directly in local currencies, reducing dependence on the US dollar and other foreign currencies.

"Our objective is to make it easier, cheaper and faster for Africans to trade with one another," Afreximbank officials said during the presentation, noting that efficient payment systems are as important as roads, ports and railways in building a single African market.

The significance stretches beyond banking halls. Economists have long identified payment fragmentation as one of the hidden taxes on African commerce. While the continent is home to more than 1.4 billion people, intra-African trade remains comparatively low, accounting for only a fraction of total exports. Business leaders argue that cumbersome payment channels have discouraged firms, particularly small and medium-sized enterprises, from venturing into regional markets.

Mike Ogbalu III, Chief Executive Officer of PAPSS, has repeatedly maintained that the platform is designed to change that reality. "PAPSS is creating a financial market infrastructure that enables the efficient flow of money securely across African borders," he said, arguing that traders should not have to rely on foreign currencies to conduct business with neighbouring countries.