COMESA Launches Digital Retail Payments Platform to Boost Cross-Border Trade

The Common Market for Eastern and Southern Africa (COMESA) has launched a new Digital Retail Payments Platform (DRPP) designed to revolutionize intra-regional trade by enabling businesses and consumers to make cross-border payments in their local currencies. The system aims to reduce transaction costs, minimize dependence on the U.S. dollar, and enhance trade efficiency among COMESA’s 21 member states.

Through the new platform, traders will be able to settle payments directly in domestic currencies without converting into hard currencies, a process that has long hindered cross-border commerce within the region. The initiative particularly targets micro, small, and medium enterprises (MSMEs), which make up around 80 percent of businesses and employ nearly 60 percent of the workforce in the COMESA bloc. Officials have set a target to keep transaction costs below three percent of transaction value, marking a significant step toward more inclusive and affordable regional trade.

The Digital Retail Payments Platform is being piloted between Malawi and Zambia, where integration testing and settlement processes are underway. Implementation is being managed by the COMESA Clearing House (CCH), which oversees regional payment and settlement systems. The DRPP also complements COMESA’s rollout of an electronic Certificate of Origin, replacing paper-based documentation and reducing delays and fraud at customs points.

Kenya’s Trade Minister, Lee Kinyanjui, described the initiative as a “game-changer” that will enable seamless value exchange across borders without dependence on scarce foreign currency. COMESA Chair and Kenyan President William Ruto welcomed the move, noting that it aligns with Kenya’s broader strategy to strengthen regional financial integration through investments in continental institutions such as the Trade & Development Bank (TDB) and Afreximbank.

Despite its promise, the platform faces challenges, including the need for regulatory harmonization across member countries to ensure consistent compliance with anti-money laundering, foreign exchange, and digital finance laws. Interoperability between national banking systems, stable internet connectivity, and liquidity management mechanisms will also be crucial for smooth operation. Analysts warn that effective risk management and transparent reporting will be key to building trust among MSMEs and financial institutions across the bloc.

If successfully scaled, the DRPP could transform intra-African trade by lowering costs, improving competitiveness, and empowering small businesses to participate more effectively in regional commerce. The initiative also supports broader efforts under the African Continental Free Trade Area (AfCFTA) to establish a unified, digitally enabled trading ecosystem across Africa.

With the launch of this platform, COMESA is signaling a major shift toward digital and financial integration that could redefine trade flows within Africa. The Digital Retail Payments Platform is not just a technological innovation—it represents a strategic step toward de-dollarization, regional financial sovereignty, and an inclusive future for African trade.

SOURCE: AGENCIES