By George Ozalla
The President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank), Dr. George Elombi, has said Africa’s economic future will be shaped by its ability to eliminate financial barriers that continue to slow down trade across the continent.
Elombi made the assertion as Afreximbank intensified efforts to deepen digital payment systems aimed at supporting trade under the African Continental Free Trade Area (AfCFTA), a framework designed to create a single market for goods and services across Africa.
According to him, trade cannot flourish where payment systems remain slow, expensive and uncertain, stressing that Africa must build financial infrastructure capable of supporting the continent’s growing economic integration agenda.
He noted that despite decades of discussions around regional trade, many African businesses still face significant difficulties moving money across borders. In many cases, payments between neighbouring African countries are routed through financial institutions outside the continent, resulting in delays, additional costs and multiple currency conversions.
To address the challenge, Afreximbank is promoting the Pan-African Payment and Settlement System (PAPSS), a platform designed to enable businesses, banks and financial institutions to settle transactions directly in local currencies without relying heavily on foreign currencies.
The bank said the initiative is intended to make cross-border transactions faster, cheaper and more efficient while reducing the cost burden on businesses, particularly small and medium-sized enterprises that form the backbone of Africa’s economy.
Elombi explained that modern payment infrastructure should be viewed with the same importance as roads, rail networks, ports and other physical assets that facilitate commerce.
He maintained that Africa’s ambition to build a stronger intra-continental trading system would remain difficult to achieve if the movement of money continues to lag behind the movement of goods and services.
Industry analysts have long identified fragmented payment systems as one of the major obstacles to intra-African trade, which remains relatively low compared to trade volumes within other regions of the world. Many businesses have been discouraged from exploring opportunities in neighbouring markets due to high transaction costs and cumbersome payment processes.
As part of its broader digital trade strategy, Afreximbank is also advancing additional financial innovations, including the African Currency Marketplace and PAPSSCARD, both of which are expected to strengthen local currency settlements and support the emergence of a more integrated continental financial ecosystem.
Recent partnerships have expanded the reach of PAPSS across several African markets, with the bank expressing confidence that wider adoption by central banks, commercial lenders and businesses will accelerate the continent’s trade transformation agenda.
Observers say the growing focus on digital payments reflects a wider recognition that Africa’s quest for economic integration will depend not only on physical infrastructure but also on modern financial systems capable of supporting seamless cross-border commerce.
For Afreximbank, the message is clear: dismantling financial barriers may prove just as important as removing physical borders in unlocking Africa’s vast trade potential.
