More than 80 UEMOA banks will participate in the pilot phase of Africa’s cross-border payment platform using local currencies.
The Central Bank of West African States (BCEAO) is preparing to launch the pilot phase of the Pan-African Payment and Settlement System (PAPSS), marking a major milestone in Africa’s financial integration agenda. More than 80 commercial banks from the West African Economic and Monetary Union (UEMOA) will take part in the pilot, paving the way for a unified cross-border payment system across the region.
Developed by Afreximbank in partnership with the Secretariat of the African Continental Free Trade Area (AfCFTA), PAPSS is designed to enable businesses and financial institutions to settle cross-border transactions directly in their local currencies, eliminating the need to route payments through the US dollar or the euro.
This innovation represents a significant breakthrough for African financial infrastructure. By reducing transaction costs, shortening settlement times, and minimizing foreign exchange risks, PAPSS is expected to make cross-border trade faster, cheaper, and more efficient.
The platform is also expected to deliver substantial benefits to businesses across the UEMOA region, particularly small and medium-sized enterprises (SMEs), by facilitating intra-African trade and improving access to regional markets. Lower payment costs and quicker settlements will enhance the competitiveness of African companies and stimulate commercial activity.
PAPSS is widely regarded as a strategic pillar for the successful implementation of the African Continental Free Trade Area (AfCFTA). By removing one of the continent’s most persistent barriers to trade—the complexity and cost of cross-border payments—the system will help unlock the full potential of Africa’s single market.
For the BCEAO, the initiative also supports broader objectives of strengthening regional financial sovereignty, modernizing payment infrastructures, and accelerating the digital transformation of the banking sector. The participation of more than 80 commercial banks demonstrates the strong commitment of West Africa’s financial industry to this landmark project.
Beyond the banking sector, importers, exporters, investors, logistics companies, and other economic operators are expected to benefit from a payment ecosystem that is faster, safer, and more transparent.
In the longer term, PAPSS is expected to reduce Africa’s dependence on foreign currencies, improve liquidity management, support the growth of fintech innovation, and strengthen the resilience of African economies against external financial shocks.
The launch of this pilot phase represents a decisive step toward building a more integrated and self-reliant African financial system. If successfully deployed across the continent, PAPSS could become one of Africa’s most strategic financial infrastructures, accelerating intra-African trade and reinforcing the continent’s economic integration ambitions.
