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The Pan-African Payment System: Africa's Answer to Western Financial Control
The Pan-African Payment System: Africa's Answer to Western Financial Control
Sputnik Africa
Africa’s campaign for greater financial autonomy is moving from political ambition to institutional planning, as the Economic Community of West African States... 12.09.2026, Sputnik Africa
2026-09-12T12:25+0200
2026-09-12T12:25+0200
2026-09-12T12:25+0200
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The Pan-African Payment System: Africa's Answer to Western Financial Control
Sputnik Africa
Africa’s campaign for greater financial autonomy is moving from political ambition to institutional planning, as the Economic Community of West African States (ECOWAS) recommits to launching the ECO in 2027 and the East Africa Community (EAC) steps up work toward a single currency and deeper regional payment integration by 2031.
The renewed push for African monetary and payment integration comes as regional blocs seek to make cross-border commerce less dependent on foreign currencies and correspondent banking arrangements. For African businesses, the difficulty of trading across borders often extends beyond finding customers or suppliers to the challenge of moving money quickly and affordably between countries. Payment infrastructure has therefore become a critical part of the continent’s drive to expand intra-African trade and reduce reliance on external financial systems. The Pan-African Payment and Settlement System (PAPSS) seeks to address that challenge by facilitating cross-border transactions in participating local currencies, reducing the need for businesses to rely on foreign currencies for eligible payments. Its network has expanded to more than 150 commercial banks and 14 national payment switches, widening the infrastructure available for cross-border transactions within Africa. The expansion provides a practical foundation for the monetary ambitions of regional blocs such as ECOWAS and the EAC, which are pursuing closer financial and economic ties across their respective regions.Professor Jonathan Aremu, a scholar of International Economic Relations and former Acting Vice Chancellor of Covenant University (CU), Ota, Nigeria, told African Currents that regional payment and settlement systems could provide the foundation for a unified African currency. He noted that settling trade in domestic currencies would allow African economies to integrate their financial systems gradually without sacrificing national sovereignty or breaching existing legal frameworks.To find out what else our guest had to say, tune in to the African Currents podcast, brought to you by Sputnik Africa.In addition to the website, you can also catch our episodes on Telegram.► You can also listen to our podcast on Apple Podcasts, Spotify, Deezer, Pocket Casts, Afripods, Podcast Addict.► Check out all the episodes of African Currents.
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The Pan-African Payment System: Africa's Answer to Western Financial Control
Africa’s campaign for greater financial autonomy is moving from political ambition to institutional planning, as the Economic Community of West African States (ECOWAS) recommits to launching the ECO in 2027 and the East Africa Community (EAC) steps up work toward a single currency and deeper regional payment integration by 2031.
The renewed push for African monetary and payment integration comes as regional blocs seek to make cross-border commerce less dependent on foreign currencies and correspondent banking arrangements.
For African businesses, the difficulty of trading across borders often extends beyond finding customers or suppliers to the challenge of moving money quickly and affordably between countries. Payment infrastructure has therefore become a critical part of the continent’s drive to expand intra-African trade and reduce reliance on external financial systems. The Pan-African Payment and Settlement System (PAPSS) seeks to address that challenge by facilitating cross-border transactions in participating local currencies, reducing the need for businesses to rely on foreign currencies for eligible payments. Its network has expanded to more than 150 commercial banks and 14 national payment switches, widening the infrastructure available for cross-border transactions within Africa. The expansion provides a practical foundation for the monetary ambitions of regional blocs such as ECOWAS and the EAC, which are pursuing closer financial and economic ties across their respective regions.
Professor Jonathan Aremu, a scholar of International Economic Relations and former Acting Vice Chancellor of Covenant University (CU), Ota, Nigeria, told African Currents that regional payment and settlement systems could provide the foundation for a unified African currency. He noted that settling trade in domestic currencies would allow African economies to integrate their financial systems gradually without sacrificing national sovereignty or breaching existing legal frameworks.
"One fundamental thing that you need to know is this. The African Continental Free Trade Area, the first phase of economic integration, is going to remove import duties across all African member states by up to 90 percent [...]. Which therefore means that by maintaining border duties on homogeneous products from other countries, Africans no longer have to buy from abroad; they will buy among themselves [...]. So, the target is to have a single currency for Africa. And that means they are going to move from a free trade area to a customs union, from a customs union to a common market, from a common market to an economic union [...]. When AfCTA is fully implemented and well implemented, it's going to be an advantage to small and medium-scale enterprises [...]. We expect a lot of benefits from this economic integration. I want to say this: the historical development of where we are- all this process started with the Lagos Plan of Action in 1980; that is when all heads of state [in Africa] met together and said, after our independence, we need to stop this neocolonialism, which is the last stage of imperialism to stop [...]. Well, let me first and foremost actually appreciate Gaddafi. Whatever way you look at Gaddafi, he's a hero in African economic integration. It's one of those reports that actually led to the African Economic Community Treaty of 1991, which is titled the Abuja Treaty. So nobody can take it away from him," Prof. Aremu.
To find out what else our guest had to say, tune in to the African Currents podcast, brought to you by Sputnik Africa.
In addition to the website, you can also catch our episodes on
Telegram.► Check out all the episodes of African Currents. 
