Taking Control of the Payment Narrative
Mike Ogbalu, CEO of the Pan-African Payment and Settlement System (PAPSS), emphasized the critical need for Africans to shape, control, and direct their own payment systems. He introduced the Cowry platform not just as a technology, but as a vital central hub for networking, sharing ideas, and co-creating payment solutions tailored specifically to the unique realities of African economies.
The platform is designed to host major events and conferences, serving as the definitive venue for conversations on global and regional payments. This focus represents a conscious effort to ensure Africa’s voice is not only heard but becomes influential in the global payments industry.
Overcoming Historical Fragmentation
The push for a unified payment system is rooted in the long-term goal of continental economic integration, a necessity driven by historical challenges. Ogbalu highlighted how the colonial history continues to fracture economic outcomes; artificial borders split communities, and the proliferation of 41 different currencies created a profound barrier to cross-border trade and the movement of goods.
This fragmentation led to an over-dependence on foreign markets, as even neighboring communities struggled to trade with each other without relying on foreign currencies for settlement.
Recalling the post-independence debates of the 1960s, Ogbalu referenced the different approaches to unity—ranging from strong national identities to regional groupings, and Kwame Nkrumah’s call for a fully united Africa. While continental unity remains the ultimate aspiration, Africa initially pursued the strategy of building regional blocs first.
PAPSS: The Missing Piece for AfCFTA
The AfCFTA emerged as the modern response to this fragmentation, establishing common rules for trade, movement, and intellectual property. However, a crucial element was missing: a cohesive, efficient, and unified payment system.
This gap provided the impetus for the Pan-African payment and clearing union, an idea first proposed by the Organisation of African Unity as far back as 1963. The core mission of PAPSS, developed to fill this need, is to:
- Enable seamless cross-border payments in local African currencies.
- Process transactions within 120 seconds, drastically cutting down on long delays.
- Embed essential security checks, including anti-money-laundering (AML) controls, sanctions monitoring, and fraud management.
- Reduce the cost of processing transactions, allowing banks, fintechs, and tech companies to securely process payments across multiple African markets.
PAPSS has already demonstrated significant progress and growing confidence from stakeholders. The network currently connects 19 countries and has integrated 160 commercial banks, 15 switches, and five fintechs.
This infrastructure is already delivering tangible benefits, particularly empowering small businesses, artisans, and shoemakers to trade across borders without worrying about complicated settlement processes. The confidence in the system is evident in the remarkable 1,000 percent growth in transaction volumes on the PAPSS network, a figure that underscores the commitment of both regulators (central banks) and commercial operators.
With the addition of the Cowry platform, the focus shifts to a new stage of co-creation, collaboration, and innovation.
Looking ahead, the goal is to expand the reach of PAPSS to 40 countries, integrating an even broader ecosystem of banks, fintechs, and payment providers to accelerate the realization of a truly unified payment landscape. The overarching vision is an Africa where seamless payments fuel economic prosperity and continental integration.
A Call for Collective Leadership
Pius Deji Olanrewaju, President and Chairman of the Chartered Institute of Bankers of Nigeria (CIBN), affirmed the importance of the CIBN’s collaboration with partners like Afreximbank and the African Union. He stressed that Africa must use its resources intelligently and mobilize them for the benefit of its people.
Olanrewaju described the Cowry forum as a platform for the continent to set its own financial agenda. He issued a final call to all African stakeholders to collaborate, innovate, and lead boldly, underscoring that the continent's economic transformation depends on the collective commitment of its institutions, policymakers, and private-sector actors.