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African banks, fintechs, and policymakers converged in Lagos on Tuesday for the inaugural Pan-African Payment and Settlement System COWRY event, marking a step towards a more integrated continental payment infrastructure.

The banking executives underscored the persistent inefficiencies in cross-border payments, noting that Africa loses an estimated $5bn annually due to slow, costly, and fragmented systems. PAPSS, they argued, offers a homegrown solution to unlock this value, enabling businesses from small enterprises to multinational corporations to transact seamlessly across borders.

Hosted jointly by Afreximbank, the African Union, and the African Continental Free Trade Area Secretariat, the conference highlighted PAPSS’ suite of tools, including the Instant Payment System, the African Currency Marketplace, and PAPSSCARD, which enable real-time payments in local currencies across multiple jurisdictions.

President of the Chartered Institute of Bankers of Nigeria, Professor Pius Olanrewaju, said, “It is a privilege to participate in the inaugural PAPSS-COWRY Conference, Africa’s leading forum for collaboration and leadership in payments and settlements. This forum stands as a testament to the dedication of Afreximbank, the AfCFTA Secretariat, and the PAPSS team in strengthening Africa’s financial infrastructure and realising the full potential of AfCFTA.”

The executive noted that Africa loses an estimated $5bn annually due to settlement inefficiencies associated with reliance on non-African currencies. Intra-Africa trade, he added, remains at 18 per cent, one of the lowest regional trade figures globally, underscoring the need for solutions such as PAPSS.

“Since going live, PAPSS has expanded to 16 countries, connected over 50 commercial banks, and enabled settlements in local currencies within 120 seconds. These are not just technical achievements; they are signals that Africa is building solutions rooted in its own realities,” Olanrewaju said.

Executive Vice President Haytham El Maayergi of Afreximbank highlighted the institution’s role in supporting trade across the continent.

“AfCFTA provides structure and momentum for Africa’s trade ambitions. Yet African businesses continue to face real barriers: slow, expensive cross-border payments, liquidity pressures, and limited access to trusted partners and market information,” he said.

Executive Vice President El Maayergi added that PAPSS’ integrated platforms allow buyers and sellers to transact in local currencies instantaneously, eliminating correspondent banking delays, unnecessary currency conversions, and high costs. “For banks, this improves margins; for fintechs, it enables multi-market scale; for SMEs, it opens new opportunities across the continent,” he said.

The Chief Executive Officer of PAPSS, Mike Ogbalu, traced the system’s origins to the post-colonial vision of pan-African economic unity. “Africa has long been hindered by artificial borders and a multiplicity of currencies. PAPSS addresses these structural barriers, enabling real-time, local currency settlements, fostering integration, and supporting economic sovereignty,” he said.

Secretary General of AfCFTA, Wamkele Mene, said, “PAPSS is at the heart of Africa’s economic sovereignty. It removes barriers to intra-continental trade and empowers a market of 1.4 billion people with a combined GDP of $3.4tn. Efficient payment systems are essential for the success of AfCFTA.”

The inaugural COWRY event provided a platform for dialogue, collaboration, and innovation. Stakeholders emphasised the importance of partnership, co-creation, and collective ownership to ensure the continent’s payment systems are sovereign, efficient, and inclusive.

“Manufacturers cannot build regional value chains without cross-border payment systems. Informal traders cannot access markets without a payment system. PAPSS is bridging this gap,” Ogbalu said.

With the support of Afreximbank, central banks, fintech innovators, and industry leaders, PAPSS is positioned to cut settlement times, reduce transaction costs, and unlock billions of dollars tied up in inefficiencies, potentially transforming Africa’s economic landscape.