In a major step towards financial integration across the continent, Nigeria has unveiled the PAPSS African Currency Marketplace (PACM), a revolutionary platform designed to enable direct currency exchanges between African countries—eliminating the need for the US dollar, euro, or other hard currencies in regional trade.
The announcement was made during the 2025 Annual Meetings of Afreximbank, held from June 25 to 28 in Abuja.
Developed by the Pan-African Payment and Settlement System (PAPSS) in partnership with fintech company Interstellar, the new system aims to address a long-standing barrier to intra-African trade: the inconvertibility of national currencies.
“PACM is a transparent, order-book-based platform with reliable counterparties, compliant with local regulations and international standards,” explained Mike Ogbalu III, Managing Director of PAPSS.
This innovation promises to transform cross-border commerce by enabling seamless, near-instant transactions through blockchain-powered infrastructure.
With over 80 companies participating in initial trials involving 12 currency pairs, PACM has already facilitated settlements for major firms such as Kenya Airways and reinsurance giant ZEP-RE—without the use of intermediary currencies.
Currently, African businesses lose an estimated $5 billion annually due to foreign exchange costs.
PACM is expected to significantly reduce this figure, fostering greater trade efficiency and cost savings.
Beyond improving payments, the platform also offers a solution to the chronic issue of revenue repatriation.
Due to existing foreign exchange controls in several countries, African companies often find their earnings trapped—amounting to more than $2 billion continent-wide. PACM aims to unlock this capital, injecting much-needed liquidity into domestic economies.
“We are building the infrastructure for Africa’s financial renaissance,” said Ernest Mbenkum, CEO of Interstellar, underscoring the platform’s long-term strategic value.
For Haytham El Maayergi, Executive Vice President of Afreximbank, PACM is a “radical transformation,” fully aligned with the ambitions of the African Continental Free Trade Area (AfCFTA).
By empowering countries to trade in their own currencies, the platform reinforces economic sovereignty and regional self-reliance—essential steps towards Africa’s deeper economic integration.
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