key points
• Dr. Kennedy Mbekeni (AfDB) Urges African countries to move from “vision to momentum” by aligning policies and mobilizing private capital afcfta.
• A major barrier to trade – high transaction costs – is being reduced Pan-African Payment and Settlement System (PAPSS)which reduces border crossing fees 98%.
• Africa's infrastructure deficit remains a challenge, but the AfDB says the necessary funds are already in place within the continent's own financial institutions.
• PAPSS now enables instant payments 20 countries In local currencies, intra-African trade eliminated the need for US dollars or euros.
main story
At the 2026 Africa Business Summit 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 Mbekeni african development bank (AfDB) told attendees that the continent is not short of resources; Rather, it lacks coordination to deploy existing capital into road, energy and water projects. He stressed that risk perceptions in Africa are often exaggerated and that private investors are willing to build the continent's infrastructure if governments provide clear, stable policies.
A practical breakthrough in this business 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 converting currencies and several “middlemen” banks in Europe or the US.
Today, PAPSS allows payments initiated in Naira to be received as Egyptian Pounds 12 secondsBypassing third party currencies completely.
The impact on small and medium enterprises (SMEs) is widespread. more than this 170 banks And with fintechs now added, an entrepreneur's market has officially expanded from their home country to a continental block 1.4 billion people. By reducing transaction costs by approximately 98%, the system is removing one of the largest “hidden taxes” on African trade, making local products more competitive against global imports.
what is being said
• “The funds needed for Africa's development already exist within the continent. We need stronger coordination and confidence,” Said Dr. Kennedy MbekeniDirector General, AfDB.
• Mike Ogbalu (PAPSS CEO) Focused on the efficiency of the new system: “Payments can start in Nigeria in Naira and reach Egypt in Egyptian Pounds in seconds.”
• Experts agreed in the conference that Public-Private Partnership (PPP) The only way to bridge the infrastructure gap is on a “continental scale” in energy and transportation.
what will happen next
• Continental expansion: PAPSS aims to include the remaining African central banks to ensure 100% continental coverage by the end of 2026.
• Harmonization of Policy: Governments are expected to rapidly remove “non-tariff barriers” such as excessive border paperwork to match the pace of new digital payment systems.
• Infrastructure Tenders: New AfDB-supported transport and energy projects are expected to be announced, specifically designed for private sector participation under a “de-risking” framework.
ground level
The bottom line is that Africa is finally building the “pipes” and “wires” needed to operate its $3 trillion market. Between AfDB's push for private investment and PAPS making cross-border payments cheaper and quicker, the AfCFTA “dream” is fast becoming a daily reality for African businesses.