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Tag: COMESA Summit

  • COMESA states unveil new system for payments in local currencies

    COMESA states unveil new system for payments in local currencies

    Traders in the Common Market for Eastern and Southern Africa (COMESA) economic bloc will soon be able to make direct and instant settlements for goods and services following the roll out of a new payment gateway by the member states.

    The Digital Retail Payment Platform (DRPP) whose piloting has commenced on the Zambia-Malawi corridor is expected to enable businesses to make payments in local currencies.

    Speaking during the 24th COMESA Heads of States Summit in Nairobi, President William Ruto who has also been elected Chairman of COMESA Authority backed the system to increase trade especially among smallholder farmers and enterprises.

    “This digital corridor must not end in capital cities. It must extend to every corner of our region connecting the stallholder farmer in a rural village to the bustling urban market. The launch of DRPP will link farmers directly with consumers and markets ensuring fair access and transparency,” said President Ruto.

    DRPP is expected to cut transaction cost and time by bypass intermediaries who contribute to high transaction costs especially for small and medium enterprises.

    “The DRPP is an Instant, Inclusive cross-border payment system designed with affordability at its core, ensuring transaction costs remain below 3pc of the transaction value,” said Lee Kinyanjui, Cabinet Secretary for Investments, Trade and Industry.

    The new payment system which was announced during the summit has been developed riding on success of the existing Regional Payment and Settlement System (REPSS) which provides institutions, enterprises and individuals with seamless fund transfers across the states with end-of day settlement in hard currencies, through the Bank of Mauritius as the Settlement Bank.

    DRPP is expected to facilitate intra-COMESA trade by enhancing cross-border trade through settlements in local currencies a move which is further backed to protect enterprises from currency related shocks.

    “By starting with the Malawi–Zambia corridor, we are demonstrating how traders can exchange value seamlessly without relying on scarce foreign currency. This reduces costs, shields businesses from currency volatility, and most importantly, opens the door for SMEs, women, and youth to participate more fully in regional trade, reaping the tangible benefits of integration,” added Lee.

    Developed under COMESA Clearing House (CCH), which is a specialized financial institution which targets to strengthen financial cooperation and regional integration, DRPP will also boasts of interoperability feature which allows integration with banks, mobile money operators, financial technology firms and digital financial service providers.

    After the pilot phase, DRPP is expected to be rolled out to all 21 member states in coming months.

  • COMESA flags DRC, Sudan crises for eroding regional trade

    COMESA flags DRC, Sudan crises for eroding regional trade

    Conflicts in the Democratic Republic of Congo and Sudan are undermining trade and integration within the Common Market for Eastern and Southern Africa (COMESA), the trade bloc’s secretary general Chileshe Mpundu Kapwepwe has told foreign affairs ministers.

    Speaking during the 20th Meeting of the Ministers Of Foreign Affairs at the ongoing 24th COMESA Summit, Kapwepwe called for urgent resolutions of conflicts in the two COMESA member states to sustain growth on intra-trade which has dropped in two consecutive years.

    In the case of Sudan, Kapwepwe told ministers that despite efforts to negotiate peace to end the war which broke out in 2023, warring factions continue to violate peace terms a move which continue to generate losses to the bloc.

    “As ceasefire violations, human rights abuses and destabilizing activities continue to worsen the conflict situation, we urge all involved parties to embrace dialogue as the only viable option of conflict resolution and urgently address the dire and deteriorating humanitarian situation,” she said.

    Additionally, COMESA countries are being urged to urgently move in and address persistent the persistent conflict in Eastern DRC which has been brought about by the activities of the M23 rebel movement and various other armed groups.

    “Not only has this conflict caused a severe humanitarian crisis, but it has also negatively impacted cross-border trade and economic activities, thus adversely affecting our regional integration efforts in the Great Lakes region. In addition, the persistent terrorist activities of al-Shabaab in Somalia have continued to undermine regional peace, security and development,” noted Kapwepwe.

    Latest data indicate that last year, intra-COMESA trade dropped by 3.6pc to stand at $13.7 billion attributed to among others, insecurity, poor infrastructure, post harvest losses and reduced production of key commodities.

    “We cannot afford to have these violent conflicts continue as they erode the regional development efforts that we have heavily invested in in the past and prevent us from initiating new ones,” she stated.

    COMESA trade bloc currently has a GDP of $1.098 trillion with trade volume totaling $454 billion as of December last year.

  • President Ruto in Burundi for COMESA Summit

    President Ruto in Burundi for COMESA Summit

    President William Ruto departed for Burundi early Thursday to attend the 23rd Summit of COMESA Heads of State and Government in Bujumbura.

    This year’s summit celebrates the 30th anniversary of COMESA, a vital trading bloc with a combined market of 640 million people and GDP of 1$ trillion.

    COMESA represents a substantial market for Kenya, which currently holds a 12.4% share of the regional market, second only to Egypt.

    Between 2019 and 2023, Kenya’s exports to COMESA grew by 8.0pc, highlighting the strong potential for regional trade and integration.

    During his visit, the President will engage in high level discussions aimed at bolstering Kenya’s relationships with key strategic partners, with a particular focus on strengthening regional value chains to deepen COMESA integration.

    He is also scheduled to meet with the Presidents of Egypt and Zambia, as well as the Prime Minister of Ethiopia, among others.

    Th discussions with Egypt will focus on enhancing the Kenya-Egypt partnership, with a joint commitment to increase trade between the two nations.

    His bilateral meeting with Zambian President Hakainde Hichilema will explore avenues to facilitate trade including the formation of Joint Trade Committee to address and resolve non-tariff barriers.