In 1994, Eastern and Southern African countries formed a common market, offering numerous facilities to national actors. However, various non-tariff barriers, financial barriers particularly, threaten the commercial inclusion sought.  

The Common Market for Eastern and Southern Africa (COMESA) will launch a digital payment platform by June 2024, COMESA Business Council (CBC) CEO Teddy Soobramanien (photo) announced at a press conference in Lusaka (Zambia) last Monday.  

The platform aims to facilitate online transactions and boost trade relations between countries in the region. "The project will be launched in eight countries before being rolled out to all 21 member states by June next year [...] Financial inclusion ecosystems are key to sustainable development and economic progress, particularly among small and medium-sized enterprises (SMEs), which drive innovation, job creation, and poverty reduction," said Teddy Soobramanien.

"By harnessing the power of digital technology, we can unlock the unprecedented opportunities for them, empowering them to realize their full potential and contribute to the region’s prosperity," he added.

The implementation of the digital payment platform is part of a COMESA project aimed at improving the digital financial inclusion of micro, small, and medium-sized enterprises (MSMEs) in the region. The project focuses on improving financial regulation and reducing cross-border transaction costs for MSMEs in the concerned markets. 

Once deployed, the platform will not only stimulate economic growth and financially empower the most vulnerable social categories but, it will also promote partnerships between businesses in the region.

Samira Njoya