Digital trade is becoming an essential lever to boost intra-African exchanges. But on the ground, challenges persist: complex cross-border payments, uneven digital infrastructure, and an insufficient regulatory framework. Between constraints and innovative solutions like PAPSS, the continent is moving towards smoother financial integration.
Digital trade in Africa is experiencing unprecedented growth, with the market estimated to exceed 180 billion dollars in 2025. But the lack of reliable infrastructure and seamless payment solutions results in losses estimated at nearly 5 billion dollars per year on the continent. In Algeria, where only 18% of commercial transactions are digital, entrepreneurs still struggle to fully take advantage of the opportunities offered by the African Continental Free Trade Area.
As an Algerian entrepreneur, we face many challenges. One of them is the cross-border payment solution. There is also the uneven digital infrastructure in the African market. We also have a regulatory framework where there is, let’s say, a large gap within the AfCFTA in Algeria. These obstacles can slow market entry.
Farah BOURAS, Founder of Think Touch Solution
To overcome these difficulties, the African Union and Afreximbank launched PAPSS, the Pan-African Payment and Settlement System. This mechanism, already adopted by 18 countries, allows savings of up to 5 billion dollars per year in transaction fees by facilitating payments in local currencies. The objective is clear: to simplify exchanges that currently represent about 15% of African trade, thereby accelerating the financial integration of the continent.
It’s a process. Our approach, when we go to a country, is to first obtain the central bank’s signature so that it becomes a member of PAPSS. In terms of adoption by banks, our goal is to reach a level where customers no longer need to ask which banks are p vb art of PAPSS.
Mike OGBALU, CEO of the PAPSS initiative
With the recent accession of the Bank of Algeria to the PAPSS network, a decisive step has been taken towards better integration of intra-African digital trade to make Africa a more connected and competitive market.
