How Africa Is Building Payment Systems to Bypass the Dollar

For decades, moving money across Africa has meant going through the US dollar and the SWIFT network — a system that adds cost, delays, and dependency on Western financial infrastructure. Now, African nations are pushing back, building homegrown payment systems that could reshape how money flows across the continent. **What is SWIFT, and why does it matter?** SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global messaging network that banks use to send and receive money internationally. While it works efficiently for major economies, it has long been a bottleneck for African cross-border transactions — typically slower, more expensive, and reliant on correspondent banks, often based in Europe or the United States. For businesses and individuals sending money between, say, Nairobi and Dakar, a payment can pass through multiple intermediary banks before arriving — each taking a fee and adding time. The World Bank estimates that the average cost of sending $200 to sub-Saharan Africa is around 8%, nearly double the global average target of 3%. **Africa's alternative: homegrown payment rails** Several initiatives are now gaining traction across the continent. The Pan-African Payment and Settlement System (PAPSS), launched by the African Export-Import Bank (Afreximbank), allows businesses to pay each other in local currencies — Nigerian naira to Ghanaian cedis, for example — without converting to dollars first. This cuts costs and removes the need to route payments through New York or London. The African Continental Free Trade Area (AfCFTA) provides the policy backbone for this shift, encouraging intra-African trade and the payment infrastructure to support it. Central banks across Africa are also exploring or launching Central Bank Digital Currencies (CBDCs) — digital versions of national currencies that can be transferred instantly across borders without traditional banking intermediaries. **Where does Mauritius fit in?** Mauritius is well-positioned in this evolving landscape. As one of Africa's leading international financial centres — ranked consistently among the top jurisdictions for foreign investment into Africa — Mauritius already acts as a bridge between Asian and African capital. The Bank of Mauritius has been active in regional monetary cooperation, and the island's regulatory framework is designed to attract fintech firms building cross-border payment solutions. If Africa successfully scales local payment systems, Mauritius could become a key settlement hub for intra-African transactions, reinforcing its role as a financial gateway to the continent. **What this means** For businesses operating across Africa, cheaper and faster payments could significantly lower the cost of trade. For individuals — including diaspora workers sending remittances home — reduced fees mean more money reaching families. For global investors, the shift signals a more financially sovereign Africa, less vulnerable to dollar fluctuations or geopolitical sanctions that can restrict SWIFT access. The transition will not happen overnight. Infrastructure gaps, regulatory fragmentation, and trust in new systems remain real challenges. But the direction of travel is clear: Africa is building its own financial plumbing, and Mauritius is positioned to be one of its most important junctions. Source: Le Defi Media