COMESA Launches Digital Retail Payments Platform to Boost Intra‑Regional Trade
Lusaka / Kampala — The Common Market for Eastern and Southern Africa (COMESA) has unveiled a new Digital Retail Payments Platform, allowing member states to transact using local currencies and bypass dependence on the U.S. dollar. The pilot has begun between Zambia and Malawi.
Key Facts & Details
COMESA comprises 21 member states, including Uganda, Kenya, Egypt, and Ethiopia.
The platform aims to reduce transaction costs by eliminating the need for currency conversion to dollars, especially benefiting SMEs that make up ~80% of businesses in the region.
The target is to keep cross-border retail transaction costs below 3%.
Kenya’s Trade Minister called it a “game‑changer,” while Kenyan President Ruto—currently COMESA chair—stressed the need for deeper African financial integration and using regional institutions like Afreximbank to support it.
For Uganda: As a COMESA member, Uganda could benefit from cheaper, faster cross-border trade — easier e-commerce, remittances, supply chains.
SMEs & traders: Lower costs and fewer currency hurdles may encourage small cross-border commerce (border towns, marketplaces).
Monetary & forex: Reduced pressure on dollar demand might help stabilize local currencies.
Adoption & technical hurdles: Will financial institutions in Uganda (banks, mobile money operators) connect with this system? What about regulation, liquidity, and settlement risk?
Competition & trust: Building confidence among users will be key — trust in platform stability, security, interoperability.
