Building a Single African Market using a Cross-Border Payment System

Photo by Tunde Buremo on Unsplash

Africa is taking bold steps toward creating a seamless single market, with financial services emerging as the backbone of cross-border trade. From banking and insurance to payments and capital access, the sector is proving vital in unlocking the continent’s economic potential under the African Continental Free Trade Area (AfCFTA).

Pan-African Payment Settlement System

At the heart of this transformation is the Pan-African Payment and Settlement System (PAPSS), a groundbreaking platform that allows instant, real-time payments in local currencies across African countries.

Developed in partnership with Afreximbank and AfCFTA, PAPSS eliminates the need for reliance on external currencies such as the US dollar, reducing costs and delays in trade. Kenya is poised to host the system’s secretariat, positioning itself as a hub for continental financial innovation.

Dr. George Elombi, President of Afreximbank, added: “PAPSS is more than a payment system; it is the infrastructure that will underpin Africa’s economic integration. By enabling instant payments in local currencies, we are removing one of the biggest barriers to intra-African trade.”

COMESA Yellow Card Insurance

Insurance is also playing a critical role. The COMESA Yellow Card Scheme, which enables vehicle insurance to be recognized across borders, has already simplified trade in Eastern and Central Africa. Plans are underway to expand this initiative beyond COMESA, ensuring traders and transporters can move goods more freely across the continent.

While West and Central Africa are ahead with integrated monetary systems, the East African Community is working toward its own monetary union. Policymakers believe this will further strengthen regional trade and financial integration.

The commitments made by African countries in the financial services sector shows the growing recognition that trade cannot thrive without strong financial infrastructure.

Emily Mburu-Ndoria, Director of Trade in Services at AfCFTA, explains that these efforts are designed to make it easier for the private sector to trade across borders. “All this work is to ensure that businesses can move, grow, and thrive in new markets. By building strong financial systems, we are building the Africa we want,” she said.

Wamkele Mene, Secretary-General of AfCFTA, reinforced the vision: “The AfCFTA is about creating opportunities for African businesses and citizens. Financial integration through PAPSS and insurance frameworks ensures that the private sector can operate with confidence across borders.”

For businesses, professionals, and service providers, these developments will mean easier access to new markets, smoother transactions, and reduced risks. As AfCFTA continues to liberalize trade in services, the vision of a single African market is steadily becoming a reality.