Introduction
Across the 21-nation Common Market for Eastern and Southern Africa (COMESA) region, a new digital payments initiative is dramatically improving how businesses transact. The initiative—dubbed the Digital Retail Payments Platform (DRPP)—allows companies to execute cross-border trade in local currencies instead of converting funds into the U.S. dollar. Bypassing the costly and complex currency-conversion chain, the platform brings quicker settlements, lower expenses and greater access for small and medium enterprises (SMEs).
Understanding the COMESA Digital Payments Platform
The COMESA Digital Payments platform is designed to connect the banking and fintech ecosystems of COMESA member states in a unified network. It enables direct local-currency transactions for cross-border trade—removing the traditional chain of conversions involving the U.S. dollar. The initiative is being rolled out in partnership with digital-finance providers and an FX (foreign-exchange) service partner.
Why This Platform Matters for SMEs
Reducing Payment Barriers
Many SMEs in the region face daunting costs and delays when trading internationally. The COMESA Digital Payments platform seeks to reduce these barriers—targeting transaction costs under 3% of the trade value. Empower Africa
Local-Currency Accessibility
By enabling trade in local currencies, the platform helps SMEs avoid holding multiple hard-currency accounts and eases exposure to foreign-exchange volatility—making regional commerce more accessible and predictable. African Leadership Magazine
Faster Settlement, More Agility
Instant or near-instant settlement means that SMEs can manage cash flow better, respond more quickly to opportunities and expand regionally with greater confidence.
How the Platform Operates
At its core, the platform links participating member-state payment systems through:
- Push payments in local currency
- Automated FX conversion and clearing
- Real-time settlement across borders
- Robust cybersecurity and compliance
For example, a company in Kenya might pay a supplier in Mauritius in Kenyan shillings, and the supplier receives Mauritian rupees—all through the platform, avoiding U.S.-dollar conversion.
Pilot Progress: Malawi & Zambia
The DRPP pilot between Malawi and Zambia is underway, making them the first to test the new system’s functionality and benefits. Initial feedback from SMEs highlights smoother settlement, fewer payment delays and reduced conversion fees. The pilot will inform the rollout across all COMESA members.
Key Advantages for the Region
Lower Cost of Trade
With the cost of cross-border payments potentially dropping to under 3%, SMEs and larger firms alike gain from enhanced affordability.
Inclusive Regional Growth
As payments become easier, more micro- and small enterprises can engage in trade, increasing economic inclusion and job creation.
Strengthening Integration
The platform supports the AfCFTA goal of a single, integrated African market by removing payment-barrier friction and linking economies more tightly.
Strategic Impacts Beyond SMEs
Beyond direct business benefits, the COMESA Digital Payments initiative stands to reshape the economic landscape:
- Enhanced liquidity and trade-flow efficiency across corridors
- Reduced dependency on dollar-based systems, boosting regional currency autonomy
- Stimulated fintech innovation, as banks and startups develop new tools to operate in this framework
FXC Intelligence
Looking Ahead: The Road to a Digital Africa
With the pilot underway, COMESA plans to scale the platform, integrate mobile-money services, and use smart-contract features for trade financing. Over time, this could bring a seamless, continent-wide digital-payments infrastructure.
Conclusion
The COMESA Digital Payments platform is unlocking new trade possibilities for African businesses—especially SMEs—by enabling local-currency, low-cost, fast settlements. As the rollout expands across the continent, it promises a more inclusive, dynamic and integrated African trade ecosystem. The future of cross-border African commerce is digital, connected and cost-efficient—and COMESA is leading the way.
FAQs
- What does the COMESA Digital Payments platform do?
It allows businesses in COMESA states to settle cross-border trade in local currencies rather than the U.S. dollar. - How does it help SMEs?
By reducing payment costs, simplifying currency conversions and enabling faster regional trade expansion. - Which corridor is piloting the platform?
The initial trial runs between Malawi and Zambia, with future rollout planned for the full COMESA region. - Can this reduce reliance on the U.S. dollar?
Yes—the platform enables local currency settlement and less dependence on the dollar-based system. - What’s next for the system?
Expansion across all member states, mobile-money integration and smart-contract trade-finance features.