The Common Market for Eastern and Southern Africa (COMESA) has launched a new digital payments platform designed to let businesses settle cross-border trades directly in local currencies. This innovation aims to drastically reduce the bloc’s heavy reliance on the US dollar for transactions, which currently inflates costs. By slashing transaction fees from an average of 8% to a target below 3%, the system promises to make regional trade significantly cheaper and more accessible, especially for small and medium-sized enterprises. Kenya, Ethiopia, and Egypt, which together account for nearly half of COMESA’s $1 trillion GDP, are expected to benefit, easing pressure on their dollar reserves and stabilizing exchange rates. Kenyan President William Ruto, the new COMESA chairman, hailed the platform as a step toward deeper regional integration and stronger local financial institutions, potentially unlocking billions in trade value for small and medium-sized businesses.
techcabal
