Afreximbank advocates for increased intra-African trade and adoption of Pan-African Payment and Settlement System
via The Reporter Ethiopia9 min read
East African countries are increasingly adopting local currency settlement for cross-border trade through the Pan-African Payment and Settlement System PAPSS, as highlighted in the African Trade Report 2026 by Afreximbank. The report emphasizes digital payment infrastructure as crucial for strengthening regional trade amid geopolitical tensions, fragmented global supply chains, and rising protectionism. Launched by Afreximbank in 2022, PAPSS enables businesses to settle transactions in local currencies, reducing reliance on the US dollar and euro and lowering transaction costs. Over a dozen African central banks are now connected to the platform. Afreximbank stresses that expanding digital payment infrastructure is a priority for Africa to transform global trade disruptions into opportunities for industrialization and regional integration, aligning with the African Continental Free Trade Area AfCFTA implementation. The bank notes that instability in the Red Sea-Suez corridor has exposed Africa鈥檚 vulnerability to external trade disruptions, reinforcing the need for stronger regional production and shorter supply chains. PAPSS is seen as a strategic tool for facilitating intra-African commerce and insulating it from external financial disruptions like sanctions and currency volatility. Intra-African trade increased by an estimated 5.47 percent in 2025 to USD 213.8 billion. South Africa was the largest contributor to intra-African trade with a 19.2 percent share. Despite overall
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