COMESA Unveils Digital Platform to Revolutionize Trade Payments

The Common Market for Eastern and Southern Africa (COMESA) introduces a novel digital payment system to facilitate cross-border trade in local currencies. This initiative aims to simplify transactions, especially for SMEs, and reduce reliance on U.S. dollars, while integrating local economies.

In a significant move toward economic integration, the Common Market for Eastern and Southern Africa (COMESA) has announced the launch of a digital payments system aimed at reducing transaction costs for businesses. The new Digital Retail Payments Platform allows cross-border trade to be settled directly in local currencies, eliminating the need to convert to U.S. dollars.

The initiative began trials between Malawi and Zambia, representing a pivotal shift in regional trade practices. Collaborating with undisclosed digital and foreign exchange service providers, COMESA plans to extend the platform's reach, benefitting medium, small, and micro enterprises that currently face expensive and complex payment processes.

Kenya's trade minister, Lee Kinyanjui, highlighted the project's potential as a 'game-changer' for the bloc's 21 member states. Kenyan President William Ruto, underscoring the nation's dedication to enhancing trade links, increased Kenya's investment in regional trade banks by $150 million. The strategy aims to foster deeper economic connections across African borders.

(With inputs from agencies.)