Recently, the PAPSS initiative, in collaboration with Interstellar, announced the launch of the African Currency Marketplace, aimed at eliminating trade barriers in the region.
Establishment of the African Currency Marketplace
The African Currency Marketplace (PACM) was announced at the Afreximbank meeting in Abuja from June 25 to 28, 2025. This initiative aims to eliminate trade obstacles associated with the 41 currencies and fragmented financial systems of the continent. Local businesses face high costs when relying on foreign currencies.
Benefits for Businesses
PACM enables direct exchanges of African currencies without relying on foreign currency, thus reducing transaction costs and speeding up settlements. This is a significant step towards financial inclusion and supporting a self-reliant African economy. During the pilot phase of the platform, over 80 companies successfully participated in transactions.
Challenges and Future Outlook
Despite the potential, challenges remain, including regulatory barriers and the need for infrastructure improvements. PAPSS and Interstellar are working to overcome these obstacles to ensure broader access and efficiency of the system. The platform is currently open to legal entities and financial institutions across the continent.
The launch of the African Currency Marketplace represents a significant initiative that could transform the financial landscape of the region and support economic integration in Africa.
