Space-age collaboration: PAPSS and Interstellar introduce currency marketplace aimed at boosting AfCFTA objectives
In a significant stride towards financial integration and efficiency, the Pan-African Payment and Settlement System (PAPSS) has unveiled the PAPSS African Currency Marketplace (PACM), a groundbreaking platform designed to facilitate direct, peer-to-peer exchange of African currencies without the need for intermediary foreign currencies[1][3].
Africa's financial landscape has long been plagued by a "hard and costly currency bottleneck," a challenge stemming from regulatory fragmentation and limited liquidity[4]. Each African country operates under its unique payment regulations, anti-money laundering (AML), and counter-terrorism financing (CFT) checks, making cross-border payments complex. Additionally, many African currencies are infrequently traded, leading to high transaction costs and difficulties in accessing foreign exchange for international trade[4].
PACM addresses these challenges by providing a real-time, cost-effective solution for cross-border transactions across Africa[2]. The platform, open to eligible corporations, financial institutions, and other market participants, operates as a marketplace for African currencies, helping to unlock trapped funds and improve liquidity[5].
One of the key features of PACM is its ability to enable direct exchange of local currencies, reducing reliance on foreign currencies and the associated risks and costs of conversion[1][5]. This feature has been hailed as a "dream come true" by early adopters such as ZEP-RE (PTA Reinsurance Company) and Access View Africa[6].
The success of PACM has led to growing demand across the continent. During its pilot phase, the platform facilitated transactions across 80 African corporates and 12 currency pairs, all settled in local currencies[7]. Notably, Kenya Airways, a company that earns Nigerian Naira from ticket sales, can now use PACM to directly exchange Naira for Kenyan Shillings without converting through a third currency[8].
The launch of PACM took place on the sidelines of the 2025 Afreximbank Annual Meeting (AAM2025) held in Abuja from June 25 - 28[9]. With over $2 billion currently 'trapped' in African countries due to exchange restrictions or depreciation of local currencies, particularly in the aviation sector, the platform's potential impact is significant[10].
The success of PACM is expected to help Africa rise by actions, not just ideas, as emphasized by Mr. Haytham El Maayergi, Executive Vice President Global Trade Bank at Afreximbank[11]. By streamlining cross-border trade, reducing transaction costs, and empowering businesses and individuals across the continent, PACM serves as a powerful liquidity engine for intra-African commerce[2][5].
In conclusion, the PAPSS African Currency Marketplace represents a significant step forward in Africa's financial integration. By addressing the longstanding challenges of currency inconvertibility, PACM has the potential to unlock trapped capital, eliminate excessive foreign exchange costs, and boost the competitiveness of African enterprises.
- The introduction of PAPSS African Currency Marketplace (PACM) signifies a significant leap in Africa's financial technology, aimed at resolving the long-standing issue of currency bottlenecks and fostering financial integration.
- PACM operates as a secure, efficient platform for direct, peer-to-peer exchange of African currencies, reducing the need for intermediary foreign currencies and lowering associated risks and costs.
- The infrastructure of PACM facilitates real-time, cost-effective cross-border transactions, addressing challenges posed by regulatory fragmentation, limited liquidity, and high transaction costs in Africa's business and finance sector.
- As PACM gains traction, it is anticipated that the platform will significantly impact general-news sectors such as aviation, where over $2 billion in trapped funds could be released, boosting intra-African commerce and enhancing the competitiveness of African enterprises in the global market.
