The Common Market for Eastern and Southern Africa (COMESA) has rolled out a new Digital Retail Payments Platform (DRPP) aimed at reshaping how trade is conducted across its 21 member states. The system, unveiled this week, allows businesses and individuals to settle cross-border transactions directly in local currencies, reducing the reliance on the U.S. dollar and the high costs associated with currency conversions.
The first pilot is already underway between Malawi and Zambia, where traders can test the system’s efficiency in processing payments. According to COMESA, the initiative was designed in partnership with its clearing house, two digital financial service providers, and one foreign exchange service provider. The goal is to bring down cross-border transaction costs to below 3 percent of the transaction value , a threshold in line with the African Union’s broader financial inclusion targets.
For decades, intra-African trade has been hampered by currency mismatches and dollar dependency, forcing traders to pay hefty conversion fees and face settlement delays. By offering a seamless local-currency payment option, COMESA is positioning the DRPP as a practical solution to unlock smoother trade flows across the bloc’s diverse economies.
While not explicitly blockchain-based, the platform reflects the continent’s growing appetite for digital financial innovation. It opens a potential pathway for fintech startups and financial institutions to integrate more advanced settlement technologies, including blockchain, in the future.
The pilot project is more than just a test of technical capacity , it is a statement about Africa’s readiness to rethink its financial infrastructure. By prioritizing local currencies and digital channels, COMESA is laying the groundwork for a more resilient and interconnected regional economy.
If the system gains traction, it could accelerate the vision of the African Continental Free Trade Area (AfCFTA) by streamlining payment flows across borders. This would make it easier for small and medium-sized enterprises to trade competitively, while reinforcing Africa’s long-term ambition to build stronger, self-sustaining markets.
As the pilot unfolds in the Malawi-Zambia corridor, the initiative will serve as a litmus test for what Africa’s digital future in trade could look like. Success here could set the tone for a new era of currency independence, efficiency, and integration across COMESA and beyond.
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