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PAPSS & Interstellar has Launched an African Currency Marketplace
The Pan-African Payment and Settlement System (PAPSS), together with Interstellar, a top African deep-tech company, has launched an African Currency Marketplace. This new platform aims to solve a major problem that has long slowed down trade within Africa, a $5 billion bottleneck caused by the need to use foreign currencies like the US dollar or euro for cross-border payments.
For many years, Africa’s 41 different currencies and separate financial systems have made it hard for businesses to trade directly with each other. Instead, they had to convert their money into hard currencies, which caused high fees, delays, and lost business opportunities. This problem has kept intra-African trade low, even though it is growing steadily. In 2024, trade between African countries was only 14.4% of the continent’s total formal trade, despite increasing to $220.3 billion.
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The African currency marketplace changes this by allowing businesses to exchange African currencies directly with one another, without needing to go through foreign currencies. Built on Interstellar’s advanced blockchain technology, the marketplace is secure, fast, and transparent. It works like a digital marketplace where buyers and sellers can trade currencies in near real-time, following local laws and regulations.
Mike Ogbalu III, CEO of PAPSS, explained that the marketplace creates a single liquidity pool for African currencies, making it easier and cheaper for companies to trade across borders. He pointed out that over $2 billion is currently stuck in African countries because of currency restrictions, especially affecting sectors like airlines. For example, Kenya Airways can now convert Nigerian Naira directly into Kenyan Shillings without waiting weeks or paying extra fees by using the marketplace.
Ernest Mbenkum, CEO of Interstellar, said this project is about more than just technology, it’s about making African currencies stronger and more useful. He described the marketplace as a tool that turns local currencies into opportunities for growth and economic independence.
Since its pilot phase, more than 80 African companies have used the marketplace to trade across 12 currency pairs, with early users praising its efficiency and ease. The platform has attracted interest not only from African businesses but also from institutions outside the continent, showing its global potential.
The marketplace supports up to 43 African currencies and plans to include regulated stablecoins like Nigeria’s cNGN, which will add more flexibility and options for users.
This launch is a key step in the broader goal of the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across Africa. By reducing reliance on foreign currencies and lowering transaction costs, the African currency marketplace helps businesses save money, speed up payments, and access new markets.
Besides helping large companies, the marketplace also benefits small and medium-sized enterprises (SMEs) and informal traders, who often face high costs and difficulties with cross-border payments. By digitizing and simplifying currency exchange, the platform promotes financial inclusion and economic growth for all Africans.
The launch of the marketplace also comes alongside other innovations, such as the PAPSSCARD, Africa’s first pan-African payment card, which makes retail payments across borders faster and cheaper, further reducing dependence on global payment networks like Visa and Mastercard.
While the marketplace promises to transform trade in Africa, some challenges remain, including regulatory hurdles and infrastructure gaps, especially in rural areas. However, with Morocco recently joining PAPSS as the 17th member country and ongoing pilot projects like the Ghana-based cross-border payment service, the system is gaining momentum and expanding its reach.
PAPSS & Interstellar launched the African currency marketplace as a groundbreaking initiative that will reshape Africa’s financial landscape. It unlocks trapped capital, cuts costs, speeds up trade, and supports the vision of a self-reliant, integrated African economy. For businesses across the continent, this means easier, faster, and cheaper ways to trade in their own currencies, helping Africa rise through action and innovation.
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