COMESA Unveils Digital Payment System to Revolutionize Regional Trade Efficiency

The Common Market for Eastern and Southern Africa (COMESA) has unveiled a groundbreaking initiative aimed at transforming trade within its 21 member states. By introducing the Digital Retail Payment Platform (DRPP), COMESA seeks to reduce trade costs and simplify cross-border transactions, thereby fostering inclusive financial services and economic growth. This innovative payment system allows member countries to settle transactions directly in local currencies, eliminating the need for foreign exchange conversions and reducing dependency on scarce foreign reserves.

The DRPP launch aligns with wider African efforts to promote local currency settlement systems, presenting an opportunity for businesses across the region to trade more efficiently. Set to pilot between Malawi and Zambia before wider deployment, the platform signals a significant stride toward facilitating seamless, cost-effective cross-border trade.

Driving Down Trade Costs Through Local Currency Transactions

Developed in collaboration with two digital financial service providers and a forex service provider, the DRPP addresses long-standing challenges plaguing regional trade. High transaction costs and currency conversion complexities have historically hindered small and microenterprises, which constitute 8% of total enterprises and account for 60% of employment across COMESA member nations. Kenyan Trade Minister Lee Kinyanjui underscored the importance of the platform, stating, “This marks the first time cross-border trade between COMESA member states can be directly settled in local currencies.”

The initiative targets maintaining transaction costs at less than 3% of the traded value, a critical benchmark for enhancing the viability and sustainability of small-scale businesses. By reducing the financial and logistical barriers traditionally associated with regional trade, the DRPP empowers enterprises, enabling them to focus resources on growth and innovation.

Leadership Push Toward Regional Trade Integration

Kenyan President William Ruto, who recently assumed the chairmanship of COMESA from Burundian President Evariste Ndayishimiye, has reinforced his commitment to economic integration across Africa. In a move to fortify regional trade infrastructure, President Ruto announced strategic capital increases for vital trade financing institutions, allocating $100 million to the Trade and Development Bank (TDB) and $50 million to Afreximbank.

These measures are designed to boost access to financing solutions, which are instrumental in enabling businesses to capitalize on the opportunities presented by the DRPP while furthering the region’s trade integration agenda.

Digitizing Trade with the Introduction of Electronic Certificates of Origin

As part of its overarching strategy for digital transformation, COMESA recently introduced the electronic Certificate of Origin (eCO), which replaces traditional paper-based certificates. Officially launched in Nairobi through a joint effort between Kenya and the COMESA Secretariat, the eCO promises to streamline border customs processes, reduce fraud, and align with global digital trade standards.

Previously introduced in Eswatini, Zambia, and Malawi on August 1, 2025, the eCO will soon be adopted by Zimbabwe, which has already moved away from accepting physical certificates. This transition to a fully digital framework accelerates customs clearances and drastically reduces administrative costs. According to data from the World Bank's "Trading Across Borders," typical Kenyan export processes require an average of 35 hours for documentation and customs clearance combined, with associated costs totaling $334. The eCO system has the potential to radically improve these statistics.

The World Trade Organization (WTO) estimates that implementing comprehensive trade facilitation policies could lower average trade costs by 14.3%, underscoring the transformative impact of digitalization on regional commerce.

Strengthening Regional Trade Competitiveness and Transparency

The implementation of the eCO reflects Kenya’s and COMESA’s shared vision of creating a streamlined, transparent, and competitive trade environment. By transitioning from manual processes and physical certificates to digital alternatives, the system builds trust in regional trade and facilitates greater collaboration among member states.

A COMESA representative noted that these developments are pivotal to enhancing trade efficiency, reducing bottlenecks, and ensuring alignment with international standards. The introduction of both the DRPP and eCO furthers COMESA’s ambition to lead the charge in fostering economic integration and unlocking new opportunities for businesses across Eastern and Southern Africa.

Conclusion: A Leap Toward Economic Integration

Through the launch of the DRPP and the eCO, COMESA is taking bold steps toward transforming the landscape of regional commerce. By addressing key obstacles such as transaction costs, currency conversion inefficiencies, and customs delays, these initiatives are set to redefine how trade is conducted in the region. COMESA’s commitment to leveraging digital solutions reflects a forward-thinking approach to economic integration and positions its member states as leaders in Africa’s drive toward a unified, efficient trade ecosystem.