This archive report was first published on 24 August 2021.
Comesa is pushing for the adoption of a digital payment system to streamline cross-border trade and avoid disputes arising from overlapping systems in the bloc.
The proposed system aims to integrate informal traders into formal markets through better access to digital finance systems, which are becoming the global norm.
According to a report by the Comesa Business Council, a public-private partnership dialogue is underway to discuss a draft model policy for the Comesa platform, which will specifically benefit micro, small, and medium-sized enterprises (MSMEs) under the bloc's Digital Financial Inclusion Project.
Progress has been made in reaching an agreement on rules and guidelines for the platform, with the adoption of a Comesa Digital Integrated Common Payment Policy and Framework for MSMEs.
Interviews and field observations were conducted with various stakeholders, including banks, mobile network operators, payment system regulators, and small- and medium-sized operators, to map out the suitability of available payment solutions across MSMEs requirements within each country.
Other countries in the pilot were Ethiopia, Malawi, Zambia, Mauritius, and Egypt, with data collected in 2019 and 2020 to bridge existing policy gaps for a more harmonised bloc approach.
However, individual countries must agree on the proposed system, as each country is unique and has its own challenges, and some economically smaller countries may fear joining the bandwagon due to the need to protect their monetary system from imported risks.
According to 2018 figures compiled by the Central Bank of Kenya, the East African Payment System (EAPS) handles $681 million worth of transactions annually, with Tanzania, Kenya, Uganda, and Rwanda operating under EAPS along with Burundi, another Comesa member state.
