Introduction
The Common Market for Eastern and Southern Africa (COMESA) has unveiled a groundbreaking initiative — the COMESA Digital Payments system. This innovative platform allows businesses across 21 member states to conduct cross-border trade in their local currencies instead of relying on the U.S. dollar. By simplifying settlements and lowering transaction costs, the system is set to revolutionize how small and medium enterprises (SMEs) operate across Africa.
The new Digital Retail Payments Platform (DRPP) has begun its pilot phase between Malawi and Zambia, marking the first step toward a more connected, cost-efficient, and resilient African trade ecosystem.
What Is the COMESA Digital Payments System?
The COMESA Digital Payments system is a regional financial infrastructure developed to promote cross-border trade within Africa by enabling direct transactions in local currencies.
Instead of converting money through multiple foreign banks and paying high dollar-based fees, businesses can now send and receive payments seamlessly.
This platform was created under the supervision of the COMESA Business Council (CBC) with support from key regional and international partners. It leverages digital innovation to connect central banks, commercial banks, fintech companies, and traders under one interoperable framework.
Why COMESA Launched the Digital Payments System
1. Reduce Transaction Costs
Traditional cross-border transactions often involve multiple conversions, expensive correspondent bank fees, and delays. The COMESA Digital Payments system eliminates these bottlenecks, allowing businesses to save significantly — with target costs under 3% of transaction value.
2. Empower Local Currencies
By enabling trade in local currencies, the system helps reduce dependence on the U.S. dollar and eases pressure on countries’ foreign-exchange reserves. This shift supports regional economic resilience and strengthens African financial sovereignty.
3. Support Small and Medium Enterprises
SMEs are the backbone of the COMESA region, representing over 80% of businesses. Yet, they often struggle with cross-border payments. This new platform simplifies processes, improves accessibility, and enables faster, cheaper, and more reliable trade settlements.
4. Boost Intra-African Trade
The platform aligns with the African Continental Free Trade Area (AfCFTA) vision by improving payment interoperability between African nations. By facilitating trade without currency barriers, it encourages regional integration and market expansion.
How the COMESA Digital Payments Platform Works
The Digital Retail Payments Platform connects payment systems across COMESA member countries through a unified digital gateway.
- Local Currency Transactions: A trader in Malawi can pay a supplier in Zambia using the Malawian kwacha, while the supplier receives payment in Zambian kwacha.
- Centralized Clearing: The system automatically manages foreign-exchange conversions via participating banks and fintech partners.
- Instant Settlements: Transactions are processed in near-real time, reducing delays associated with traditional bank transfers.
- Secure & Regulated: It follows international standards for cybersecurity, KYC (Know Your Customer), and AML (Anti-Money Laundering) compliance.
This streamlined process makes digital trade faster, safer, and more transparent.
Pilot Program: Malawi and Zambia Lead the Way
The pilot phase between Malawi and Zambia is the first practical test of the COMESA Digital Payments system.
Both countries have made major strides in fintech and digital-banking readiness, making them ideal testing grounds. Early results are promising — SMEs report easier settlement, fewer delays, and reduced transaction expenses.
Once proven successful, COMESA plans to expand the system to all 21 member states, including Kenya, Egypt, Ethiopia, Uganda, and Rwanda.
Key Benefits of COMESA Digital Payments
1. Faster and Cheaper Transactions
The system cuts out intermediaries, enabling near-instant cross-border payments at lower costs. Businesses save both money and time.
2. Inclusive Financial Growth
Small traders and micro-enterprises gain easier access to regional markets, creating new opportunities for entrepreneurship and employment.
3. Strengthened Regional Integration
The platform connects economies and accelerates trade under the COMESA and AfCFTA frameworks, helping the continent move toward a unified digital market.
4. Reduced Dollar Dependency
By promoting local-currency trade, COMESA helps stabilize regional economies and protect them from global currency fluctuations.
5. Digital Transformation and Innovation
This project stimulates Africa’s fintech ecosystem, encouraging banks and startups to develop new financial products aligned with digital-first trade.
Strategic Impact on Africa’s Economic Landscape
The COMESA Digital Payments initiative is more than a payment tool — it’s a catalyst for regional transformation.
- Economic Empowerment: By lowering financial barriers, the system enhances competitiveness among African businesses.
- Improved Liquidity: Easier settlements free up capital and enable firms to reinvest in production and trade.
- Policy Alignment: It complements African Union and AfCFTA goals for a single digital market, positioning COMESA as a regional leader in financial innovation.
The success of this system could inspire similar frameworks across other African trade blocs, creating a truly continental digital payments network.
Future Outlook: Toward a Fully Integrated African Market
As the pilot phase advances, COMESA aims to onboard more member states and integrate additional financial institutions. The ultimate goal is to establish a continental digital payment ecosystem that connects businesses across Africa seamlessly.
Upcoming features may include:
- Integration with mobile-money services and fintech apps
- Cross-border instant payment gateways
- Smart contracts for trade financing
- Data-driven credit access for SMEs
With continued collaboration between governments, regulators, and the private sector, COMESA is paving the way for Africa’s digital economic transformation.
Conclusion
The COMESA Digital Payments system represents a defining moment for Africa’s trade future. By promoting local-currency transactions, cutting costs, and empowering SMEs, it lays the foundation for inclusive growth and regional prosperity.
As adoption spreads, this platform will not only boost cross-border commerce but also strengthen Africa’s financial independence. The DRC, Kenya, Egypt, Ethiopia, Malawi, and Zambia — along with other COMESA members — now stand at the forefront of a new era in digital trade.
The message is clear: Africa’s economic power lies in connection, innovation, and collaboration — and COMESA’s digital payments system is making it possible.
FAQs
1. What is the COMESA Digital Payments system?
It’s a regional payment platform that enables cross-border trade in local currencies among COMESA member states.
2. Which countries are part of the COMESA pilot program?
The initial trial involves Malawi and Zambia, with plans to expand to all 21 member countries.
3. How does the system benefit small businesses?
It lowers transaction costs, simplifies payments, and allows SMEs to trade across borders more easily.
4. Will this reduce reliance on the U.S. dollar?
Yes, it promotes local-currency settlements, helping reduce dollar dependency in regional trade.
5. What’s next for the COMESA Digital Payments project?
The platform will expand to more member states and integrate with mobile-money and fintech solutions to reach more users.
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Discover how COMESA digital payments are transforming African trade with faster, cheaper cross-border transactions in local currencies.
