AfDB and PAPSS call for private capital to power $3 trillion african market

KEY POINTS
• Dr. Kennedy Mbekeani (AfDB) has urged African nations to move from “vision to velocity” by aligning policies and mobilizing private capital for the AfCFTA.
• A major barrier to trade—high transaction costs—is being slashed by the Pan-African Payment and Settlement System (PAPSS), which reduces cross-border fees by 98%.
• Africa’s infrastructure deficit remains a challenge, but the AfDB maintains that the necessary funds already exist within the continent’s own financial institutions.
• PAPSS now enables instant payments across 20 countries in local currencies, eliminating the need for the US Dollar or Euro for intra-African trade.

MAIN STORY
At the 2026 Africa Trade Conference in South Africa, top financial leaders declared that Africa’s path to prosperity lies in “telling its own story” and trusting its own systems.

Dr. Kennedy Mbekeani of the African Development Bank (AfDB) told attendees that the continent does not lack resources; rather, it lacks the coordination to channel existing capital into roads, energy, and water projects. He emphasized that the perception of risk in Africa is often exaggerated and that private investors are ready to build the continent’s infrastructure if governments provide clear, stable policies.

A practical breakthrough in this trade ecosystem is the rapid expansion of PAPSS. Mike Ogbalu, CEO of PAPSS, highlighted the irony that Africa has historically hosted some of the world’s most expensive payment corridors. Previously, sending money from Nigeria to Egypt often required converted currencies and multiple “middleman” banks in Europe or America.

Today, PAPSS allows a payment initiated in Naira to arrive as Egyptian Pounds in under 12 seconds, bypassing third-party currencies entirely.
The impact on Small and Medium Enterprises (SMEs) is massive. With over 170 banks and fintechs now connected, an entrepreneur’s market has officially grown from their home country to a continental block of 1.4 billion people. By reducing transaction costs by nearly 98%, the system is removing one of the biggest “hidden taxes” on African trade, making local products more competitive against global imports.

WHAT’S BEING SAID
• “The funds needed for Africa’s development already exist within the continent. What we need is stronger coordination and confidence,” said Dr. Kennedy Mbekeani, Director-General, AfDB.
• Mike Ogbalu (PAPSS CEO) noted the efficiency of the new system: “A payment can originate in Nigeria in Naira and arrive in Egypt in Egyptian Pounds within seconds.”
• Experts at the conference agreed that Public-Private Partnerships (PPPs) in energy and transport are the only way to bridge the infrastructure gap at “continental scale.”

WHAT’S NEXT
• Continental Expansion: PAPSS aims to onboard the remaining African central banks by the end of 2026 to ensure 100% continental coverage.
• Policy Harmonization: Governments are expected to fast-track the removal of “non-tariff barriers” like excessive border paperwork to match the speed of the new digital payment systems.
• Infrastructure Tenders: New AfDB-backed transport and energy projects are expected to be announced, specifically designed for private sector participation under the “de-risking” framework.

BOTTOM LINE
The Bottom Line is that Africa is finally building the “pipes” and “wires” needed for its $3 trillion market to function. Between the AfDB’s push for private investment and PAPSS making cross-border payments cheap and instant, the “dream” of the AfCFTA is rapidly becoming a daily reality for African businesses.