By Esnart Tembo:
Strides have been registered towards the rollout of a digital finance payment system which will allow local traders to import goods within the Common Market for Eastern and Southern Africa (Comesa) region using the Kwacha.
Central banks in the region are moving towards facilitating seamless transactions for regional businesses using native currencies.
Championed by the Comesa Business Council (CBC), the platform will link systems of central banks in member states with that of commercial banks for private sector players to make payments using their home currencies.
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This was disclosed in Lilongwe on Tuesday during a Digitalisation Toolkits for Greater Financial Inclusion Workshop that Comesa CBC hosted.
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According to Comesa CBC, the platform will be rolled out by the end of this year and will start with eight countries including Malawi, Zambia, Uganda, Kenya, Egypt, Mauritius, Ethiopia and Rwanda.
CBC President James Chimwaza said traders will be able to showcase and extend their products, and conduct transactions using local currency, making trade more accessible and efficient.
CBC Chief Operating Officer Jonathan Pinifolo said digital financial platforms are key to addressing payment bottlenecks traders face.
He rated the initiative as a game-changer for regional trade.
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According to Pinifolo, people will now trade across borders using local currency and conduct online transactions without the need for physical banking.
“If you are buying products from Egypt or Zambia, you don’t have to use the USD because you can use the Malawi Kwacha to purchase the products on the digital financial platforms” Pinifolo said.
Minister of Tourism Vera Kamtukule hailed the regional body for equipping local women entrepreneurs with relevant skills during the training.
She said the initiative would empower local traders, reduce costs and maximise profits.
“It is integral for small businesses to make sure that they are digitally connected,” Kamtukule said.
It is expected that the launch of these digital financial platforms would enhance economic integration and growth within the Comesa region.
