One of the major challenges facing Nigeria and other African countries is their inability to have a single currency and card payment system that will guarantee financial independence from the West.
The U.S. dollar has long been the single currency of global trade that has not only dominated Africa alone, but the global economy as well.
The continued trend has proven to be a source of concern as it has placed Nigeria and other countries on the African continent in a position of financial dependence and economic vulnerability.
Across the continent, the dollar has been the priority as nearly all imports including wheat, and pharmaceuticals are priced and paid for in dollars.
Also, International loans are issued in dollars, while trade between African countries is settled in dollars, and even the price of fuel depends on the dollar’s value.
According to the International Monetary Fund (IMF), the dollar accounted for 57.4% of global foreign exchange reserves in Q3 2024, and 88% of global currency exchanges involve the dollar
The implication has had ripple effects across board as every interest rate hike by the U.S. Federal Reserve has affected African economies.
Daily Trust checks showed that the fluctuation of the dollar puts significant pressure on Nigeria and Africa’s public debt.
In sub-Saharan Africa, around 40% of public debt is external, and over 60% of that is denominated in dollars, according to the International Monetary Fund.
The independence magnifies the impact of dollar volatility on African economies, making them more fragile.
Back in Nigeria, the country’s heavy debts are valued in dollars, which sometimes put pressure on the country’s foreign reserves.
For instance, in 2023, the country spent billions trying to stabilize its currency, the naira, only to let it drop by 40%.
Same story goes for Ghana, the cedi lost nearly 30% of its value that same year, triggering a debt crisis.
In Egypt, the depreciation of the pound against the dollar caused inflation to surge above 30%.
Meanwhile, Kenya spent nearly 60% of its tax revenue on debt payments in 2022-2023, a burden made worse by the strong dollar and a weakening shilling.
Afreximbank’s initiative to launch card
Subsequently, Africa took a major step toward financial independence with the launch of the Pan-African Payment and Settlement System card (PAPSSCARD), the continent’s first Pan-African card payment scheme.
The initiative was officially unveiled during the just concluded 32nd Annual Meetings of the African Export-Import Bank (Afreximbank), held in Abuja, Nigeria.
The PAPSSCARD is a joint venture between Afreximbank, the Pan-African Payment and Settlement System (PAPSS), and Mercury Payment Services (MPS).
Designed to facilitate fast, secure, and cost-effective retail transactions across African borders, the card is expected to transform the continent’s payment infrastructure by reducing reliance on foreign systems.
Eliminating cross border payment glitches
Currently, most card-based transactions in Nigeria and the African region are channeled through global payment systems, resulting in high transaction fees and limited control over financial data.
Consequently, the PAPSSCARD addresses these issues by ensuring that transactions are processed entirely within the continent, allowing Africa to retain the value, data, and economic benefit of its payments.
‘For too long, Africa’s reliance on external payment systems has impeded trade, increased costs, and compromised control over our financial data’, said President and Chairman of Afreximbank, Prof. Benedict Oramah.
‘PAPSSCARD changes that. It empowers us to move money swiftly, securely, and affordably across our borders. It is a transformative step towards strengthening intra-African trade and preserving value within the continent’, he added.
According to the CEO of PAPSS, Mike Ogbalu III, the new card represents more than just a technological advancement—it is a ‘powerful symbol of progress’ and a bold move toward financial self-reliance.
‘This is a practical, home-grown solution that reflects how Africa trades, lives, and grows’, he added.
Similarly, Executive Chairman of Mercury, Muzaffer Khokhar, echoed similar sentiments, describing the launch as a milestone in Africa’s journey toward financial sovereignty.
‘This is about innovation and building trust in African systems. PAPSSCARD will become Africa’s most trusted payments brand’, he said.
The PAPSSCARD is expected to benefit a wide spectrum of users—from governments and banks to merchants and everyday consumers.
Acting CEO of PAPSSCARD, John Bosco Sebabi, said the new offering would help reduce transaction costs for public institutions, drive financial sector innovation, and improve access to modern, secure payment tools across Africa.
The unveiling at the Afreximbank meetings also included the launch of commemorative cards.
Key strategic partners involved in the rollout include issuing banks – Bank of Kigali and I&M Bank Rwanda, Rwanda’s national switch Smart Cash (Rswitch), and Nigeria’s Unified Payments, which ensures widespread acceptance in the country.
He said the initiative aligns closely with Afreximbank’s broader strategy to promote financial inclusion and deepen intra-African trade under the African Continental Free Trade Area (AfCFTA).
With support from central banks and national payment systems, the continent-wide adoption of the PAPSSCARD is expected to accelerate regional integration and build a more self-sustaining African economy.
Daily Trust reports that policy makers from Africa and the Caribbean had called for the continent and its island neighbors to unlock and deploy over $4 trillion in domestic capital to accelerate infrastructure development and economic transformation.
The policy makers who spoke at the just concluded 32nd Annual General Meeting of the African Export-Import Bank (Afreximbank) high-level panel titled, ‘Powering Development with Own Capital: A Call to Action to African/Caribbean Multilateral Financial Institutions’ during) agreed that both regions possess significant capital resources, but lack the frameworks and political will to deploy them efficiently.
They called for homegrown institutions to step up execution and mobilise domestic capital to bridge the continent’s gaping infrastructure and development financing gap, estimated at over $160 billion annually.
The capital, they said, is parked in local pensions, reserves, and sovereign wealth funds, and agreed that Africa and the Caribbean remain capital-rich but delivery-poor.
‘The challenge is ultimately the process. It’s getting things done’, Chairman of BCA and Former Group Chief Executive Officer, Ecobank, Arnold Ekpe who featured as a panelist said.
Beyond capital availability, Ekpe argued that there is also a bigger challenge of enabling capital to move.
According to him, ‘It is easier to travel within Africa on a European passport than an African one. If people can’t move, capital won’t either’.
Part of the solutions, the panelists agreed, lies in creating structures and regulatory environments that allow private sector actors to take calculated risks, innovate, and scale
Elombi pledges to prioritise Africa’s trade facilitation
Meanwhile, the newly appointed President of the African Export-Import Bank (Afreximbank), George Elombi pledged to prioritise the transformation of Africa’s trade structure.
He also pledged to overhaul key infrastructure such as seaport terminals and power stations, as part of his vision to sustain and deepen the bank’s mandate.
Speaking at a press conference following his appointment at the Afreximbank Annual Meetings in Abuja, Elombi said he would continue to uphold the treaty establishing Afreximbank, with a clear focus on transforming Africa’s trade structure.
‘To change the structure of our trade so that we can face development head on, which we have started doing over the last few years, but we cannot relinquish now. We have to continue that effort’, he said.
He emphasised that his agenda will focus on strategic infrastructure that enables trade, highlighting export processing zones, seaport terminals, power stations, and human capital.
‘That’s going to be about dealing with the export processing zones, dealing with the sea port terminals, dealing with the power stations, dealing with the infrastructure we need and the human resources and the capital we need to put them in many rounds’, he said, adding that ‘When that is done, our continent will be transformed’.
Elombi’s comments followed a moment of transition at the bank, as outgoing president Benedict Oramah formally handed over after three decades of service.
