Introduction
A transformative moment has arrived for trade within the Common Market for Eastern and Southern Africa (COMESA) region. The launch of its new Digital Retail Payments Platform (DRPP) enables firms across 21 member states to conduct cross-border business in their own currencies—bypassing the traditional reliance on the U.S. dollar. With settlements that are faster, cheaper and more accessible, this platform is unlocking trade potential for small and medium enterprises (SMEs) and regional economies alike.
What Makes the COMESA Digital Payments Platform Unique?
At its core, the COMESA local-currency payment platform blends digital-finance innovation with regional policy ambition. It enables seamless transactions across member states in local currencies, connecting central banks, fintech providers and commercial banks in a streamlined framework. The pilot phase—between Malawi and Zambia—signals the operational readiness of the system.
Why Local-Currency Settlement Matters
Lowering Trade Friction
Converting into and out of the U.S. dollar adds hidden costs, delays and complexity for African traders. The new platform removes this friction and sets a target cost of under 3% of transaction value for participating businesses.
Strengthening Economic Sovereignty
By enabling trade in local currencies, the system reduces dollar dependency and gives member states greater control over their financial integration. This shift supports sustainable economic frameworks and regional resilience.
Empowering SMEs for Growth
For small and medium enterprises, cross-border trade becomes more viable. Lower costs, easier payments and faster settlement mean more firms can tap the regional market and scale with confidence
How the Platform Works in Practice
The platform’s architecture includes:
- Push payments in local currencies
- Automated currency conversion and clearing between member states
- Real-time or near-real-time settlement across borders
- Robust security, KYC/AML compliance and fintech integration
For example, a supplier in Egypt could receive payment from a buyer in Kenya in Egyptian pounds—achieved without passing through the U.S. dollar.
Pilot Success & Broader Rollout
Malawi and Zambia currently host the pilot phase of the digital-payments platform. Early indicators show positive impact—SMEs report improved payment speed and lower fees. COMESA is preparing for a broader rollout to major member countries including Kenya, Ethiopia, Rwanda and Egypt.
Benefits for Regional Trade and Economy
Enhanced Trade Efficiency
Simpler, faster settlement means supply-chains can move more smoothly—boosting trade volumes and competitiveness.
Financial Inclusion & SME Growth
Micro- and small enterprises can access regional opportunities that were once too costly or convoluted—empowering entrepreneurship and job creation.
Stimulating Fintech Ecosystem
The new platform encourages banks, mobile-money providers and fintech startups to innovate, creating financial-services growth and enhancing digital infrastructure.
Strategic Implications and Future Vision
The launch of COMESA’s local-currency payment platform is a strategic milestone for regional integration. It supports the AfCFTA vision, accelerates trade-finance innovation and sets a blueprint for other African regional trade blocs. As the system scales, it may lay the foundation for a fully integrated digital-payments infrastructure across the continent.
Conclusion
The COMESA Digital Payments platform is reshaping how Africa trades—enabling local-currency, low-cost, rapid cross-border settlement and empowering SMEs with new opportunities. As the rollout extends across the region, it strengthens economic sovereignty, drives innovation and fosters inclusive growth. For businesses, policymakers and investors alike, this development signals a brighter, more connected future for African trade.
FAQs
- What is the COMESA local-currency payment platform?
It is a digital-payments system allowing COMESA member-state businesses to transact across borders in their own currencies rather than using the U.S. dollar. - How does it improve payment costs?
By removing intermediaries and U.S.-dollar conversion layers, the system targets transaction costs below 3% of trade value. - Which countries are participating in the pilot?
The initial trial is between Malawi and Zambia, with plans for full regional rollout. - Why is this important for SMEs?
It simplifies cross-border trade, lowers costs and allows more small firms to participate in regional markets. - What’s the next step for this platform?
Expansion across all COMESA member states and integration with mobile-money, fintech services and smart-contract trade financing.