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The Common Market for Eastern and Southern Africa (COMESA) has launched a Digital Retail Payments Platform designed to revolutionize cross-border trade by allowing businesses to transact directly in local currencies rather than relying on the US dollar.
The initiative, which is currently being piloted between Malawi and Zambia, aims to expand across all 21 COMESA member states, including Kenya, Ethiopia, and Egypt. By enabling direct settlement in national currencies, the system seeks to lower transaction costs to below 3% of trade value, compared to the current regional average of around 8%.
According to COMESA officials, the digital platform is being developed in collaboration with two digital financial service providers and a foreign exchange firm, whose names have not yet been disclosed.
“For the first time, cross-border trade within COMESA can be settled directly in local currencies,” said Kenya’s Trade Minister, Lee Kinyanjui, during the launch in Nairobi. “This is a game-changer for regional commerce.”
Driving Regional Trade and Reducing Dollar Pressure
COMESA, which represents a market of over 640 million people and a combined GDP exceeding $1 trillion, includes member states such as Burundi, Egypt, Ethiopia, Kenya, Libya, Malawi, Rwanda, Sudan, Uganda, Zambia, and Zimbabwe, among others. Despite this vast market, intra-regional trade remains below 10% of total commerce, largely due to currency conversion costs, limited financial connectivity, and overreliance on the US dollar.
The new payment platform aims to unlock trapped value and promote greater participation by small and medium-sized enterprises (SMEs) in cross-border trade. For key economies like Kenya, Egypt, and Ethiopia, which collectively account for nearly half of COMESA’s GDP, the system could ease foreign exchange pressures, stabilize local currencies, and enhance trade competitiveness.
A Step Toward Financial Sovereignty and Integration
Kenya’s President William Ruto, who currently chairs COMESA, hailed the initiative as a landmark in Africa’s economic integration journey. He emphasized that strengthening intra-African financial systems is essential for achieving the continent’s development goals.
“One of the most viable pathways for Africa is to strengthen our home-grown financial institutions,” Ruto stated.
He further revealed that Kenya has increased its investment in regional financial institutions, including $100 million in the Trade Development Bank (TDB) and $50 million in Afreximbank, to bolster trade financing and facilitate seamless regional transactions.
A Shift Toward Local Currency Empowerment
By enabling direct settlements in currencies such as the Kenyan shilling, Ethiopian birr, or Egyptian pound, the platform could significantly reduce dependence on the dollar, cut transaction delays, and stimulate regional liquidity.
Analysts say this innovation aligns with the African Continental Free Trade Area (AfCFTA) goals of building resilient regional value chains and fostering financial autonomy across Africa.
As COMESA moves to roll out the Digital Retail Payments Platform across its member states, the initiative is expected to reshape trade dynamics, empower local businesses, and accelerate Africa’s shift toward economic self-reliance.
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