COMESA Launches Digital Retail Payments Platform to Boost Cross-Border Trade and Cut Costs
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The Common Market for Eastern and Southern Africa (COMESA) has launched a Digital Retail Payments Platform aimed at reducing transaction costs and facilitating trade by allowing businesses to settle payments directly in local currencies. The initiative, announced on Thursday, marks a significant milestone in Africa’s broader push to strengthen regional trade and reduce dependence on hard currencies such as the U.S. dollar.
COMESA, which includes 21 member states such as Egypt, Kenya, and Ethiopia, said the new system will streamline cross-border payments by eliminating the need for costly currency conversions. The platform is being rolled out in partnership with two digital financial services providers and a foreign exchange provider, though the partners were not named.
The digital payments system will initially undergo pilot trials between Malawi and Zambia, with plans for expansion to other member countries following successful implementation.
“For the first time, cross-border trade within COMESA can be settled directly in local currencies,” said Kenya’s Trade Minister, Lee Kinyanjui, describing the initiative as a “game-changer.” He noted that the system aims to support micro, small, and medium enterprises (MSMEs), which make up 80% of businesses and 60% of employment within COMESA states.
Kinyanjui added that the platform would help traders “exchange value seamlessly without relying on scarce foreign currency,” emphasizing that transaction costs will be capped at under 3% of the trade value, a major improvement over current cross-border fees.
Kenyan President William Ruto, who recently took over as COMESA chairperson, praised the initiative and called for deeper regional integration to boost intra-African trade. He also reaffirmed Kenya’s commitment by announcing increased investments in regional trade finance institutions — $100 million in the Trade and Development Bank (TDB) and $50 million in Afreximbank.
“One of the most viable pathways for Africa, and for regional economic blocs like COMESA, is to strengthen our home-grown multilateral financial institutions,” Ruto said.
The Digital Retail Payments Platform is expected to strengthen financial inclusion, boost trade efficiency, and accelerate the implementation of the African Continental Free Trade Area (AfCFTA) objectives by making cross-border transactions faster, cheaper, and more accessible for all.
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