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How PAPSS lets a Ghana–Nigeria trade settle in seconds, in local currency

Correspondent banking made intra-African trade slow and expensive. PAPSS changes the settlement layer — here is what that means for a trader.

Kwesi Mensah, Head of Settlement · 8 August 2026 · 5 min read

Until recently, paying a supplier in Lagos from Accra usually meant routing cedi into dollars, through a correspondent bank abroad, into naira — several days, several fees, and an FX spread at each hop. For a low-margin trade, that friction can erase the profit.

A different settlement layer

The Pan-African Payment & Settlement System (PAPSS), launched by Afreximbank and African central banks, lets a payer send in their local currency and the payee receive in theirs, with settlement between central banks — no detour through the US dollar. Payments clear in near real time rather than days.

Why it matters for working capital

Faster settlement shortens the cash-conversion cycle. Capital that used to sit “in transit” for days is freed to fund the next trade — which is exactly the gap Sankofa finances.

At Sankofa Trade, cross-border settlement over PAPSS is free to the trader. We show you the interbank mid-market FX rate before you confirm and add a single, flat 0.5% — no hidden correspondent-bank spread buried in the exchange rate.

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